CHANDIGARH: The Enforcement Directorate (ED) has conducted searches at three premises linked to former Haryana minister Gopal Kanda, including his residence, farmhouse and office, in connection with an alleged homebuyers' real estate fraud case involving Vatika Limited.
According to agency sources, the Gurugram unit of the ED is probing a large-scale alleged real estate fraud by Vatika Limited, in which investors were reportedly induced to put money into commercial projects on assurances of timely possession, assured returns, lease rentals and execution of sale deeds.
The four projects under investigation involved the collection of approximately Rs 248.46 crore from 661 investors, without handing over possession or executing the promised sale deeds till date.
“Based on the financial trail and suspected diversion of homebuyers' funds,” officials said, raids were conducted at three premises in Gurugram linked to Kanda, “his residence, farmhouse and office premises,” said an officer.
The searches were conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), based on the financial trail and suspected diversion of homebuyers' funds, the agency said.
The ED probe has found that the diverted funds were subsequently transferred to various companies allegedly linked with Gopal Kanda.
Advocate Arun Khatri, who represents Kanda, said they are trying to ascertain the details of the ED case for now.
A former legislator from the Sirsa seat, Kanda was defeated in the 2024 Assembly polls by Congress' Gokul Setia.