ED Seizes Properties Linked to Rohtas-LJK Group in Lucknow: A Major Real Estate Scam
In a significant move against real estate-linked money laundering, the Directorate of Enforcement (ED) in Lucknow has provisionally attached properties worth Rs 110.05 crore, with a current market value exceeding Rs 300 crore, under the Prevention of Money Laundering Act (PMLA), 2002.
Real EstateMoney LaunderingEdRohtas GroupLjk GroupReal EstateOct 31, 2025
The ED’s probe began on the basis of 83 FIRs registered by Uttar Pradesh Police under various sections of the Indian Penal Code (IPC), 1860, against M/s Rohtas Project Limited and its promoters. The company had launched two large township projects — the Sultanpur Road Project and the Raebareli Road Project — where customers were offered land and plot bookings with the promise of either possession after 30 months or a 150% return on the booking amount. However, neither were the promised projects developed nor was the invested money refunded to buyers, leading to widespread complaints and multiple police cases.
The ED investigation revealed that the promoters of the Rohtas Group diverted funds collected from buyers to purchase land in the names of associate entities and benamidars (proxy owners). Land holdings exceeding 100 bighas were allegedly acquired using diverted investor funds. Further, the ED found that shares of the Rohtas Group’s associate companies holding these assets were later transferred to the LJK Group. Similarly, several benami properties initially held by the Rohtas Group were subsequently transferred to Amalya Constructions LLP and Amyra Infrastructure LLP, both controlled by the same group, to disguise ownership and launder the proceeds of crime.
A senior ED official stated that the attached assets represent the proceeds generated through fraudulent real estate operations and money diversion schemes aimed at defrauding hundreds of investors. The agency has said that further investigation is ongoing to trace the end-use of diverted funds, identify other beneficiary entities, and uncover possible financial linkages between the Rohtas Group and the LJK Group. This crackdown is expected to send a strong message to other real estate developers and entities involved in similar fraudulent activities, reinforcing the government's commitment to combating financial crimes and protecting the interests of investors.
Frequently Asked Questions
What is the total value of the properties seized by the ED?
The total value of the properties seized by the ED is Rs 110.05 crore, with a current market value exceeding Rs 300 crore.
Which companies are involved in this real estate scam?
The companies involved in this real estate scam are M/s Rohtas Project Limited and its associate entities, M/s Amalya Constructions LLP, and M/s Amyra Infrastructure LLP, all controlled by the LJK Group.
What were the promises made to the investors by Rohtas Project Limited?
Rohtas Project Limited promised investors land and plot bookings with the option of either possession after 30 months or a 150% return on the booking amount.
How did the promoters of the Rohtas Group divert funds?
The promoters of the Rohtas Group diverted funds collected from buyers to purchase land in the names of associate entities and benamidars (proxy owners).
What is the next step in the ED's investigation?
The ED is continuing its investigation to trace the end-use of diverted funds, identify other beneficiary entities, and uncover possible financial linkages between the Rohtas Group and the LJK Group.
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