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ED provisionally attaches properties of Sobha worth 200cr

Earlier this month an FIR was registered by Haryana Police against Sobha Builders and others for allegedly selling plots meant for the “no profit no loss” scheme in the open market for an enormous profit. In response to the FIR and as per the provisions of the Money Laundering Act 2002 (PMLA), the Directorate of Enforcement (ED) has attached immoveable properties worth approximately Rs 200 crores of the company, as proceeds of crime (POC). The land parcels are said to be situated in Kerela.

According to details of the FIR published in an Economic Times article, the police believe the company, in cohesion with others, orchestrated an elaborate plan wherein they sold the plots to individual entities at the price decided by the scheme but then regained control via consecutive sales transactions to eventually sell it in the open market for a substantial profit. Apparently 60 shell LLPs were created under the names of known associates and employees, who purchased the plot and immediately sold it to a Eunomia Developers LLP. It is alleged that Eunomia Developers LLP is actually controlled by Sobha Builders and some of its designated partners have traceable connections to the company.

According to the scheme the plots should have been sold for approximately Rs 48 lacs each. Therefore, the company is said to have created POC amounting to almost Rs 200 crores. Since the plots in question have already been dispelled, the ED attached land of equal value elsewhere. The land attached belongs to a subsidiary of Sobha called Technobuild Developers. In 2019 the ED conducted a raid on 17 premises of Sobha Builders which eventually led to the arrest of two employees. So far, the ED has attached properties worth approximately Rs 300 crores belonging to the company.

In its regulatory filling, Sobha Builders issued a statement regarding the current events. They claim to have followed due protocols and procedures, including disclosing the company’s financial statements in the periodic manner. They are presently fully cooperating with authorities to ensure a resolution is found at the earliest. About the land parcels being attached, the company has clarified that there were no immediate or near future plans to develop them and so the current events will not have any short- or medium-term impact on the company’s operations.

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