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R. K. Arora, the chairman of Supertech Group, India's prominent real estate developer, has been denied 'default bail' in a money laundering case by a Delhi court. This rejection follows Arora's plea, asserting that he should be granted bail due to the Enforcement Directorate's (ED) alleged filing of an 'incomplete charge sheet' against him. Additional Sessions Judge Devender Kumar Jangala, leading the court, decisively dismissed the application. Judge Jangala emphasized that the ED had concluded its investigation against Arora, and the proceedings were conducted accordingly.
The court had already acknowledged the sufficiency of evidence when taking cognizance of the alleged offense. It categorically stated that the assumption of an incomplete investigation is unwarranted, as the charge sheet reflects the ED's thorough probe. The ED's charge sheet, also recognized as the final report, provided substantial evidence to press money laundering charges against Arora. He was taken into custody on June 27 under the criminal sections of the Prevention of Money Laundering Act (PMLA) after undergoing intensive rounds of questioning.
This case is rooted in a slew of FIRs (first information reports) filed against Supertech Group, its directors, and promoters across Delhi, Haryana, and Uttar Pradesh. The allegations encompass criminal conspiracy, deception, breach of trust, and counterfeiting. These legal actions stem from allegations that Supertech defrauded approximately 670 home buyers, leading to an alleged misappropriation of Rs 164 crore. The ED's investigation revealed that Supertech Limited and its associated group companies collected funds from prospective home buyers primarily meant for constructing residential projects, yet they were allegedly diverted to purchase land in the name of other group entities.
These lands were pledged as collateral to borrow additional funds. As a consequence, this led to defaults on loans totalling around Rs 1,500 crore. Supertech Limited, established in 1988, has delivered around 80,000 apartments, primarily in the Delhi-NCR (National Capital Region) area. The company currently manages about 25 projects within the NCR. Notably, it has yet to provide possession to more than 20,000 buyers. Last August, the Supreme Court ordered the demolition of the company's twin towers, Apex and Ceyane, further exacerbating its troubles.
These nearly 100-metre structures on the Noida Expressway were deemed to have been constructed within the Emerald Court premises in violation of established norms. Over 3,700 kilograms of explosives were used to raze the towers, incurring a loss of about Rs 500 crore for Supertech, covering construction and interest costs. The situation took another negative turn in March of the following year, when the National Company Law Tribunal (NCLT) initiated insolvency proceedings against Supertech Limited. The Union Bank of India had filed a petition citing non-payment of dues amounting to about Rs 432 crore.
Although Supertech contested the insolvency order, the NCLT subsequently approved the initiation of insolvency proceedings for one of the housing projects in Greater Noida (West), excluding the entire company. Recently, the Supreme Court granted Supertech permission to raise approximately Rs 1,600 crore from institutional investors to complete 18 housing projects across Delhi-NCR, developed under the primary entity, Supertech Ltd. Different companies within the Supertech Group are executing these projects.
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