Hyderabad: ED Conducts Raids on Realty Firms in Money Laundering Case

HYDERABAD: The Enforcement Directorate (ED) Hyderabad zonal office conducted raids on Thursday under the Prevention of Money Laundering Act at two locations linked to realty firms and their promoters.

The operation resulted in the seizure of jewelry and bullion worth ₹5.4 crore and unaccounted cash amounting to ₹72.7 lakh, bringing the total seizure to approximately ₹6.1 crores. Incriminating documents related to unaccounted cash transactions and property dealings were also recovered.

The investigation originates from multiple FIRs filed by the Telangana police against a realty firm promoter and others. These were based on complaints from investors and buyers alleging fraud.

The firm and its promoters reportedly collected large sums from buyers for residential projects but failed to deliver flats or refund the money, thereby defrauding investors.

The ED’s probe revealed that the firm lacked statutory permissions and failed to maintain an escrow account for the projects. Instead, funds were deposited into various bank accounts and collected in cash.

The investigation uncovered proceeds of crime amounting to ₹842 crore, including ₹216.9 crore collected in cash, which was concealed and left unrecorded in the company’s accounts.

The siphoned funds were further diverted to unrelated entities and individuals through fake banking transactions. Additionally, companies linked to the promoters were found to have engaged in high-value transactions exceeding ₹20 crore, including property sales and purchases.

Despite these findings, the promoters evaded summonses and failed to provide essential documents, hindering the investigation. Previously, the ED had attached assets worth ₹161.5 crore in connection with the case.