The Enforcement Directorate (ED) on Wednesday carried out searches at multiple locations linked to the Royale Estate Group, including its offices and the premises of its promoters in Chandigarh and Punjab. The raids are part of an ongoing money laundering investigation against the real estate firm.
Details of the Raids
The ED teams, accompanied by central security forces, conducted simultaneous searches at around a dozen locations across Chandigarh, Mohali, and other parts of Punjab. The action was initiated under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Sources said the searches were focused on the group's registered office in Chandigarh and the residences of its key directors.
Background of the Case
The investigation stems from multiple complaints filed by homebuyers alleging that the Royale Estate Group had collected crores of rupees from them for various housing projects but failed to deliver possession or refund their money. The ED had registered a case of money laundering based on these complaints and the findings of a preliminary inquiry.
Seizure of Documents and Assets
During the raids, the ED officials seized several incriminating documents, digital evidence, and property-related records. They also froze certain bank accounts and attached movable and immovable assets belonging to the group and its promoters. The estimated value of the attached assets is yet to be ascertained.
Legal Proceedings
The ED is likely to issue summons to the promoters for questioning in the coming days. The agency is probing the alleged diversion of funds collected from homebuyers to other businesses and personal accounts. The case is expected to be heard in the special PMLA court in Mohali.
This is not the first time the Royale Estate Group has faced legal action. Earlier, the Punjab and Haryana High Court had directed the state police to investigate allegations of cheating against the group. The ED's intervention marks a significant escalation in the probe.
The raids have sent shockwaves through the real estate sector in the region, with industry experts calling for stricter regulatory oversight to protect homebuyers' interests.
