Madhya Pradesh: EOW Registers PE Against Sahara Firms For Cheating Investors

Bhopal (Madhya Pradesh): The Economic Offences Wing (EOW) has initiated a preliminary enquiry (PE) against Sahara Real Estate Corporation and Sahara Housing Investment Group for allegedly cheating investors and engaging in irregular land transactions. Officials revealed this development on Wednesday, following a raid by the Income Tax Department a month ago.

During the raid, papers related to Sahara Group’s land were discovered in the possession of Rajesh Sharma and other builders. It was uncovered that one of the companies involved, owned by a former minister and his family, had purchased land from the Sahara Group.

According to EOW DG Upendra Jain, the Sahara Group had collected funds from investors to purchase land for the development of Sahara City. In 2014, the Securities and Exchange Board of India (SEBI) had permitted the group to return the invested amounts to investors.

The Supreme Court had directed the group to sell its land and deposit the proceeds directly into investors' accounts, with a specific bank account designated for this purpose.

However, the investigation revealed that the Sahara Group sold 310 acres of land at significantly reduced prices. In Bhopal's Maksi area, 110 acres were sold for Rs 48 crore to Sinap Real Estate Private Limited, while 100 acres in Jabalpur were sold for Rs 20 crore to Nayasa Devbuild Private Limited.

Another 100 acres in Katni were sold to the same company. In total, the Sahara Group sold 310 acres for just Rs 90 crore. Interestingly, the group had valued the Maksi land at Rs 125 crore in the Supreme Court in 2014, but it was sold for a mere Rs 48 crore.

The investigation also revealed that the lands were sold to shell companies, and the funds from these sales were not deposited into investors' accounts, as required by the court's directive.

The EOW has now registered a case against the Sahara Group officials, shell companies, revenue officials, and others involved in the irregularities, as part of its ongoing investigation into the fraudulent activities.