BENGALURU: The Directorate of Enforcement (ED) has provisionally attached immovable properties worth Rs 71.48 crore of Hindustan Infracon (India) Pvt Ltd, including non-agricultural lands and residential properties, in Mysuru, Bengaluru South and Anantapur in Andhra Pradesh, in a fraud case under the provisions of Prevention of Money Laundering Act (PMLA), 2002, the ED stated in an official release on Tuesday.
The Central agency had initiated an investigation on the basis of FIRs registered by the Karnataka police in various districts against Hindustan Infracon India and its directors under the Indian Penal Code (IPC).
“The investigation revealed that the accused persons, with a fraudulent intent of cheating the public, illegally collected funds/deposits of Rs 389 crore from 7,18,817 investors, with a promise of exorbitant rate of returns on their investments. However, the accused persons failed to return Rs 199 crore to the investors,” charged the ED.
The agency added that “Hindustan Infracon India Ltd diverted the funds received from the investors and made payments to Bharath Builders, Hindustan MegaShoppe India Ltd (a sister concern), K Lalitha and Vajra Properties. These funds were utilised for the purchase of immovable properties and withdrawal in cash for personal gains,” the ED concluded.
On June 27, the ED carried out search operations at five locations in Bengaluru and Mandya of Hindustan Infracon and related persons under the PMLA.