Mumbai
The promoter of a Mumbai-based real estate firm has been arrested by the Enforcement Directorate (ED) under the provisions of the Prevention of Money Laundering Act (PMLA) in a case related to alleged fraud of over Rs500 crore, agency officials said on Thursday.
Builder Mahesh Oza, promoter of Karan Group Builders and Developers, was taken into custody on Tuesday from jail, where he has been lodged after he was first arrested by the Bengaluru police.
According to the ED, in this case, multiple FIRs related to fraud and cheating in the name of investment in real estate projects were registered by the Karnataka Police. “The PMLA investigation had revealed that the complainant had invested approximately Rs526 crore in different real estate projects undertaken by various groups and individuals. Subsequently, this amount was siphoned off by showing it as paid to various persons and collecting cash and commission in lieu of bank entry,” the ED alleged in a statement.
As per the ED, investigation has revealed that out of the total investment, a bulk (Rs121.5 crore) was made for a real estate project undertaken by M/s. Karan Group Builders & Developers headed by Mr Oza. This amount was routed through various entities and subsequently diverted by Mr Oza through another network of entities and people. Mr Oza was produced before the PMLA special court, which had remanded him to 10 days ED custody.
