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The Enforcement Directorate (ED) apprehended R K Arora, the chairman and owner of real estate company Supertech, earlier this week on allegations of money laundering, according to official sources. Arora was taken into custody under the criminal provisions of the Prevention of Money Laundering Act (PMLA) following his third round of questioning at the ED's office in New Delhi.
Arora is scheduled to appear before a special PMLA court shortly, where the ED will seek an extension of his remand. The money-laundering case against Supertech, its directors, and promoters originates from multiple First Information Reports (FIRs) filed by the police departments in Delhi, Haryana, and Uttar Pradesh.
In April, the ED had seized assets valued at over Rs 40 crore belonging to Supertech and its directors. In a statement released at that time, the ED alleged that the company and its directors were involved in a "criminal conspiracy" to defraud the public. They were accused of collecting funds as advance payments from prospective buyers for booked flats in their real estate projects but failing to fulfill their obligations by delivering the possession of the flats on time.
During its investigation, the agency discovered that Supertech Limited and its affiliated companies collected funds from homebuyers and obtained project-specific term loans from banks and financial institutions for construction purposes. However, the funds were allegedly misappropriated and diverted to purchase land in the name of other group companies, which was subsequently pledged as collateral to secure additional loans.
The Supertech group defaulted on its payments to banks and financial institutions, resulting in approximately Rs 1,500 crore of loans becoming non-performing assets (NPAs), the ED revealed. With the arrest of R K Arora and the ongoing investigation, the ED aims to unravel the complex web of financial irregularities and hold accountable those responsible for defrauding the general public.
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