Mumbai: The Enforcement Directorate (ED) arrested builder Vijay Machinder of Ornate Spaces in an alleged money laundering case on Wednesday.
Machinder had faced charges in a housing fraud case filed by the Mumbai Police’s Economic Offences Wing in December 2021. ED sources revealed that during their investigation, Machinder was non-cooperative and evaded questioning.
On Thursday the ED will produce him before the special PMLA court, seeking his custody.
The background of the ED case
The ED’s case originates from an FIR initially lodged with the Oshiwara police station, later transferred to the EOW. Subsequently, the ED registered the Enforcement Case Information Report under PMLA. The investor filed a complaint against three directors of Ornate Space, alleging the company’s failure to commence a project and the unauthorised sale of seven out of the 14 booked flats to a third party.
Complainant narrates ordeal about builder scam
According to the EOW’s FIR, the complainant, Rajendra Surana, alleged that he invested ₹45 crore in the Grove Towers project in Andheri, booking 14 flats. The funds were invested since 2012.
Surana claimed that Machinder accepted the money but failed to register the flats. Additionally, the builder did not commence construction until 2016. While waiting for construction to begin, Surana discovered that Machinder had allegedly sold flats to third parties, thus defrauding him.
Surana also alleged that the builder had defrauded his relatives and friends.