The promoter of Sunteck City, a prominent real estate project in Chandigarh, has been sent to the custody of the Enforcement Directorate (ED) until May 27. The development comes as part of an ongoing investigation into allegations of money laundering and financial irregularities linked to the project.
Court Order and Custody Details
A local court in Chandigarh on Tuesday remanded the promoter, identified as Kamal Kant, to ED custody for further questioning. The agency had sought his custody, citing the need to unearth the money trail and identify other individuals involved in the alleged scam. The ED’s probe is based on a First Information Report (FIR) filed by the local police, which accuses the promoter of cheating homebuyers and siphoning off funds.
Allegations of Fraud
According to the ED, the promoter and his associates collected crores of rupees from homebuyers under the pretext of developing a luxury residential and commercial complex in Chandigarh. However, the project allegedly failed to take off, leaving hundreds of buyers in the lurch. The agency suspects that the funds were diverted to shell companies and used for personal gains, including the purchase of assets in India and abroad.
The ED has also frozen several bank accounts and properties linked to the promoter and his family members. The investigation has revealed that the accused used a complex web of transactions to launder the money, involving multiple entities and benami properties.
Homebuyers’ Plight
Homebuyers, who had invested their life savings in the project, have expressed relief over the ED’s action. Many of them have been protesting for years, demanding their money back. The Chandigarh administration has also formed a committee to look into the matter and explore ways to compensate the affected buyers.
The court has directed the ED to produce the promoter before it on May 27, after the completion of his custody period. The agency is expected to file a detailed report on the progress of the investigation.
Legal Proceedings
The promoter’s lawyers argued that he was being falsely implicated and that the project was delayed due to regulatory hurdles and not because of any fraudulent intent. However, the court rejected the plea, noting that the gravity of the allegations warranted a thorough investigation.
The ED has also issued summons to several other individuals, including former employees of the company and brokers, to appear for questioning. The agency is also probing the role of banks that financed the project.
This case is seen as a major crackdown on real estate fraud in the region, which has seen a spate of similar cases in recent years. The ED’s action is expected to send a strong message to errant builders and provide some solace to aggrieved homebuyers.
