NEW DELHI: The Enforcement Directorate (ED) conducted searches at various locations in Ghaziabad and Delhi on Thursday as part of its investigation into an alleged housing society fraud involving a real estate developer and cooperative society officials.
The search operation, led by ED’s Lucknow zonal office, falls under Section 17 of the Prevention of Money Laundering Act (PMLA) in connection with a case against Sandeep Singh, promoter of Shrasth Propbuild Pvt Ltd, and the office-bearers of Seva Suraksha Sahkari Awas Samiti.
Officials familiar with the proceedings stated that the accused allegedly convinced members of the cooperative housing society to give up their rights over approximately 41,544 square meters of land in Akbarpur Bahrampur, Ghaziabad, under the pretext of providing residential flats for a redevelopment project.
Investigators suspect that the accused misused the development rights obtained from society members and fraudulently sold the land and flats to third parties, generating proceeds that are now being scrutinized under anti-money laundering regulations.
The ongoing searches aim to gather evidence related to the suspected money laundering activities and to trace the financial flow from the alleged fraudulent transactions.
Previously, on June 24, the ED opposed the interim bail plea of Al-Falah Trust chairman Jawad Ahmad Siddiqui in a Rs 493-crore money laundering case, arguing that he might dispose of or conceal the proceeds of crime linked to illegal activities.
The next hearing regarding this matter is set for July 8. Siddiqui had requested six weeks of interim bail for his wife’s cancer treatment, following a denial of his plea by the trial court.
On June 17, the Delhi High Court requested a status report from the ED regarding Siddiqui’s bail plea. Siddiqui approached the High Court after his request was denied in lower courts.
In its response, the ED claimed that Siddiqui was the main architect and beneficiary of a financial scheme that fraudulently collected tuition fees by misrepresenting the university’s NAAC accreditation and deceiving the National Medical Commission (NMC) and the Directorate of Medical Education and Research (DMER), Haryana. These funds were allegedly funneled to his family-owned entities and offshore investments.
