Enforcement Directorate Raids Bhutani Group: A Troubled Real Estate Giant
The Noida-based real estate developer, Bhutani Group, is facing fresh scrutiny as the Enforcement Directorate (ED) conducts search operations at its offices and those of its promoters. This marks another significant raid for the company, which has a histo
Real EstateBhutani GroupEd RaidsTax EvasionLogix City CenterReal EstateFeb 27, 2025
This latest move adds to the mounting troubles for the Noida-based real estate developer, which has already faced multiple investigations by different agencies.
This is not the first time Bhutani Group has been in the crosshairs of an investigating agency.
In January last year, 40 teams from the Income Tax (IT) department conducted raids on four builders in Noida, including Bhutani Group, for tax evasion.
The six-day operation resulted in the seizure of Rs 1,500 crore in cash by IT officials.
The IT department also discovered two pen drives hidden by employees of Bhutani Group.
The data recovered from these pen drives revealed that the Bhutani Group had accepted unaccounted cash worth Rs 595 crore since the financial year 2019-20.
This unaccounted cash amounted to Rs 429 crore over the financial years 2019-20, 2020-21, and 2021-22.
Despite these setbacks, Bhutani Group has continued to pursue major projects.
In November, Bhutani Infra acquired the commercial project 'Logix City Center' from PAG and Logix group promoters for an estimated cost of around Rs 1,000 crore.
However, financial reports from Logix BuildTech Pvt Ltd, available on the Bhutani Group's website, show a loss of Rs 29.39 crore in the second quarter of the financial year 2024-25, with an income from operations of Rs 21.70 crore during the same period.
Earlier this month, Bhutani Infra announced its withdrawal from any planned collaboration with the WTC Group, stating that it would have no role in any of the WTC Group's current, ongoing, completed, or future projects.
Bhutani Infra CEO Ashish Bhutani said, “Our initial discussions with the WTC Group were intended to align with Bhutani Infra's broader vision to contribute to India's commercial real estate landscape.”
“However, we have chosen to step away from any association with the WTC Group fully.
Bhutani Infra remains committed to its independent growth strategy and will continue delivering high-quality commercial projects that uphold our values of trust, integrity, and excellence with honesty and transparency,” he added.
In July 2024, Bhutani Group had signed an agreement to buy a majority stake in WTC.
The latest developments highlight the ongoing challenges and strategic shifts the company is facing as it navigates through these turbulent times.
Frequently Asked Questions
What is the Bhutani Group?
The Bhutani Group is a real estate developer based in Noida, India, known for its commercial and residential projects. The company has faced multiple investigations for tax evasion and other financial irregularities.
Why did the Enforcement Directorate (ED) raid Bhutani Group?
The ED raided Bhutani Group as part of an ongoing investigation into financial irregularities and potential money laundering activities. The company has a history of being targeted by various probe agencies.
What did the Income Tax department find during their raid on Bhutani Group?
The IT department seized cash amounting to Rs 1,500 crore and discovered two pen drives containing data that revealed the Bhutani Group had accepted unaccounted cash worth Rs 595 crore since the financial year 2019-20.
What recent project did Bhutani Infra acquire?
Bhutani Infra acquired the commercial project 'Logix City Center' from PAG and Logix group promoters for an estimated cost of around Rs 1,000 crore in November.
Why did Bhutani Infra withdraw from its collaboration with the WTC Group?
Bhutani Infra withdrew from its planned collaboration with the WTC Group to focus on its independent growth strategy and maintain its values of trust, integrity, and excellence with honesty and transparency.
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