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The Enforcement Directorate has attached assets worth INR 121.8 crore from Neomax Properties and its group companies under the PMLA, linked to a massive INR 8,000 crore investor fraud. The properties-spread across Tamil Nadu-add to a prior INR 117 crore attachment confirmed in December 2023. The ED's probe revealed that Neomax lured thousands with promises of 12-30% returns on real estate plot schemes, but diverted funds into unrelated businesses instead. Thousands of investors remain unpaid, and officials say more properties may be seized. This is among the largest financial fraud cases in Tamil Nadu, with assets attached now valued over INR 800 crore.
?The Enforcement Directorate (ED) has provisionally attached assets worth INR 121.80 crore belonging to Neomax Properties Pvt Ltd and its group companies under the Prevention of Money Laundering Act (PMLA), 2002. These assets, located across Tamil Nadu, include both movable and immovable properties with an estimated market value of around INR 600 crore. Advertisement
This action follows a previous attachment in December 2023, where the ED had provisionally attached properties valued at INR 117 crore, later confirmed by the PMLA Adjudicating Authority. The investigation was initiated based on an FIR registered by the Economic Offences Wing (EOW), Madurai, against Neomax Properties and its group companies-Garlando Properties, Transco Properties, Tridas Properties, and Glowmax Properties-as well as directors and shareholders Kamalakannan, Balasubramanian, Veerasakthi, Charles, and others.
According to the ED, the Neomax Group allegedly lured thousands of investors into real estate plot development projects by promising high returns ranging from 12% to 30%. The group collected substantial funds, primarily in cash, but failed to deliver either the promised plots or the returns. Instead, the funds were diverted to multiple shell entities and group companies engaged in unrelated businesses, including hospitality, healthcare, pharmaceuticals, retail, information technology, renewable energy, logistics, aerospace services, education, fashion, and e-commerce.
Investigators estimate that the Neomax Group owes investors nearly INR 8,000 crore, including the promised returns. Rather than repaying these dues, the group reportedly induced depositors to reinvest their matured amounts, exacerbating the financial losses for the victims.
The ED emphasized that the latest attachment aims to secure the proceeds of crime under the PMLA while investigations continue to trace additional assets and uncover the full extent of the money laundering network. Authorities have urged affected investors to come forward with evidence as the probe progresses. With the total market value of attached properties now exceeding INR 800 crore, the Neomax case ranks among Tamil Nadu's largest financial fraud investigations in recent years.
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