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The Enforcement Directorate has initiated an investigation into alleged money laundering involving WTC Builder and the Bhutani Group, conducting raids across Delhi-NCR. The probe stems from complaints of fraud against homebuyers, with allegations that WTC Builder collected more than INR 1000 crore but failed to deliver projects for over a decade. The investigation also focuses on a 2022 project in Faridabad. Bhutani Infra, in a statement earlier this week, claims to have severed ties with WTC Group and is cooperating with the investigation, denying any financial or operational connections with the WTC group.
The Enforcement Directorate conducted searches at numerous properties belonging to two real estate enterprises and their promoters within the Delhi-NCR region. This action was part of an inquiry into money laundering, associated with alleged fraud on individuals who had purchased homes in their projects The operation targeted WTC Builder, its promoter Ashish Bhalla, and the Bhutani Group, among other entities. Advertisement
The Enforcement Directorate's Gurugram office conducted raids at approximately a dozen locations across Delhi, Noida (Uttar Pradesh), and Faridabad and Gurugram (Haryana), under the provisions of the Prevention of Money Laundering Act (PMLA).
The investigation into money laundering originated from First Information Reports (FIRs) lodged by the Faridabad police and the Economic Offences Wing of the Delhi Police against WTC Builder, Bhalla, and the Bhutani Group.
The WTC group has several projects in Faridabad, Noida, and other areas. It is alleged that the group procured more than INR 1000 crore from investors, yet failed to deliver the promised projects for about 10-12 years.
It is further alleged that WTC Builder and the Bhutani Group initiated a residential project in Faridabad in 2022, attracting investments from 2000 individuals. Residents of Faridabad have also been holding public demonstrations to protest against alleged irregularities in the project.
In a statement issued earlier this week, Bhutani Infra declared that it had terminated all associations with the WTC Group earlier this month and that it "is now fully cooperating with the Enforcement Directorate in its investigation." The company asserted that "it possesses no financial or operational links to WTC, and any implication to the contrary is wholly inaccurate and deceptive."
The Enforcement Directorate's actions signify a serious attempt to address the grievances of defrauded homebuyers and to combat financial irregularities within the real estate sector. Bhutani Infra's assertion of non-involvement and cooperation with the authorities will be closely scrutinised as the investigation progresses. The outcome of this probe could have significant implications for investor confidence and regulatory oversight in the Delhi-NCR real estate market, potentially leading to stricter measures to protect homebuyers.
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