The Enforcement Directorate (ED) recently uncovered properties valued at over INR 200 crore during raids across 15 locations in Delhi and Gurugram, related to an investigation into Vatika Limited. The company is accused of failing to deliver promised commercial units and assured returns to over 400 investors. The ED seized incriminating documents and digital devices during the operation. Vatika Group had taken loans exceeding INR 5,000 crore, with a significant portion waived by Indiabulls. The investigation, based on FIRs filed in 2021, exposes issues in the real estate market and underscores the need for reforms to safeguard investors.
The Enforcement Directorate (ED) recently identified properties valued at over INR 200 crore during raids conducted across 15 locations in the national capital and neighbouring Gurugram. This operation, carried out under the Prevention of Money Laundering Act (PMLA), followed investigations into Vatika Limited and associated individuals.
The searches took place earlier this month in connection with a case involving over four hundred investors who had not received the assured returns specified in their Builder Buyer Agreements (BBAs). Additionally, the company failed to deliver the commercial units to these investors. During the operation, the ED seized various incriminating documents, records pertaining to buyer investments, loans taken by the group companies, and digital devices, including pen drives, hard drives, laptops, and mobile phones.
The investigation was initiated based on multiple First Information Reports filed in 2021 by the Economic Offence Wing of the Delhi and Haryana Police, alleging offences of criminal conspiracy, cheating, and dishonestly inducing the delivery of property against Vatika Limited and its promoters, Anil Bhalla, Gautam Bhalla, and others. The ED found that Vatika Limited lured investors into making payments for future projects by promising high returns, including assured returns until project completion and lease-rent returns thereafter.
However, midway through the projects, the company ceased payments and failed to deliver the respective units in various developments in Faridabad and Gurugram, thereby committing criminal offences. The investigation further revealed that Vatika Group had taken loans exceeding INR 5,000 crore, of which approximately INR 1,200 crore was waived in a settlement with Indiabulls.
Additionally, the ED noted that Vatika Group had not adhered to due procedures, such as timely renewal of licenses from the Department of Town and Country Planning (DTCP) and lapses regarding the timely completion of projects. The investigation has so far uncovered approximately INR 250 crore generated as proceeds of crime.
In conclusion, the ongoing investigation into Vatika Limited highlights significant issues within the property market, particularly regarding investor protection and corporate accountability. As the ED delves deeper, the findings may lead to reforms aimed at safeguarding investors and ensuring transparency in real estate transactions, ultimately fostering a more secure environment for future investments in the sector.
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