Mumbai: ED Arrests Builder Lalit Tekchandani In Fraud Case, Remanded In Custody Till March 23

Mumbai: The Enforcement Directorate (ED) on Monday arrested Lalit Tekchandani, former director of Supreme Construction and Developers, for duping 1,700 prospective flat buyers of Rs423 crore. Tekchandani was produced before the special PMLA court on Monday wherein ED sought his custody for fourteen days. The special PMLA judge MG Deshpande has remanded him in ED custody till March 23.

ED prosecutor Kavita Patil, while seeking his custody, contended that Tekchandani was instrumental in luring gullible flat buyers by false promises and siphoned off their money willfully for the purpose of money laundering.

ED contended that Tekchandani's family held 100% shares in Supreme Construction and Developers Pvt Ltd. He was the director of the company till April 2016, when he started to relinquish shares of the company held by his family members to the family members of the present director Manulla Kanchwala.

During the period 2009-10, the said company entered into an agreement to purchase land at Taloja, Navi Mumbai, to develop a residential project under Rental Housing Scheme floated by the Maharashtra government.

He started developing the said property and in turn, his company collected Rs423 crore from more than 1,700 prospective flat buyers. Possession of flats was to be made by 2016, however, till date no possession has been given to any of the buyers.

So far six complaints have already been registered followed by which ED also launched a probe into money laundering. Tekchandani's lawyer Taraq Sayyed argued that all towers in all projects undertaken by the accused are already constructed.

“Of course, there is delay in handing over possession to the flat buyers and the same was sheerly due to necessary statutory compliance with the municipal corporation and other authorities,” he added, saying that there is no money laundering.

The court, however, said that investigation is at a very preliminary stage. Hence, considering the gravity, magnitude and seriousness of the offence, an opportunity has to be given to the ED to investigate the ECIR thoroughly and the same is not possible unless prayer for remand of accused in the ED custody is allowed.