Amrapali: Enforcement Directorate begins probe, SFIO to join in 

An ED official on Tuesday said the agency registered a case of money laundering on July 1 on the basis of 16 FIRs filed by the Noida Police.

Published: 23rd July 2019 05:29 PM  |   Last Updated: 24th July 2019 07:53 AM   |  A+A-

Enforcement Directorate

Enforcement Directorate (File | PTI)

Express News Service

NEW DELHI:  The Supreme Court on Tuesday directed the Enforcement Directorate (ED) to investigate money laundering by directors and officials of real estate major Amrapali Group, which siphoned off money of around 42,000 homebuyers in Noida and Greater Noida, leaving them in the lurch. The agency has subsequently filed a criminal case of money laundering against the Group and its promoters. 

ALSO READ: SC orders NBCC to take over pending Amrapali projects; orders probe against group

According to ED officials, an investigation was already been initiated, and a case filed in the agency’s zonal office in Lucknow under the Prevention of Money Laundering Act earlier this month. “A case was filed after taking cognizance of at least 16 First Investigation Reports registered against the Group by the Noida Police,” a senior ED official informed.

Meanwhile, sources in the Ministry of Corporate Affairs said the Serious Fraud Investigation Office is also likely to initiate a separate probe in the matter. A group of homebuyers had already approached corporate affairs secretary. After homebuyers moved Supreme Court against the Amrapali Group, a bench comprising Justices Arun Mishra and U U Lalit had, sensing serious financial discrepancies, ordered forensic auditing of the company’s accounts.

ALSO READ: Amrapali, Unitech, and more: Government all set to crack the whip on errant builders post-election

The report was subsequently submitted to the top court in May this year.The 2,000-page report submitted by court-appointed auditors Ravi Bhatia and Pawan Aggarwal said that the collapse of Amrapali Group was not due to change in market conditions or investment decisions, but due to “wilful criminal actions” of its proprietors. The promoters and top officials of the firm diverted homebuyers’ money for personal benefits and building their own empire, it said.

ALSO READ: Funds recovered from Amrapali may be enough to complete stalled units

The report pointed out that the Group set up more than 100 shell companies in the names of officials; around 23 such firms were set up in the names of office boys, peons and drivers. The top brass of the Group used these bogus firms to divert funds worth Rs 3,000 crore. 

The report also revealed that posh flats were booked for as low as Rs 1, Rs 5 and Rs 11 per square feet. The ill-gotten money was spent on houses, luxury cars and weddings, and was invested in shares and mutual funds. The auditors noted that over Rs 9,500 crore can be recovered from the company.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp