Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
The Enforcement Directorate (ED) has attached 403 immovable properties worth Rs 83 crore belonging to Kalptaru Buildtech Corporation Limited, its group entities, and directors. These properties are located in cities such as Lucknow, Agra, Mathura, and Aligarh. The move comes after a case was registered against the firm in March 2022 under the Prevention of Money Laundering Act, 2002 (PMLA).
The ED is a specialized law enforcement agency responsible for enforcing economic laws and fighting financial crime in India. It is responsible for investigating cases of money laundering and foreign exchange violations, among other things. The agency has the power to seize and confiscate properties, assets, and proceeds of crime, and it can also arrest and prosecute individuals involved in financial crimes.
The ED sources said that a probe was initiated based on various FIRs registered by Uttar Pradesh Police and other state police against the owner of the firm since 2017 for committing cheating and fraud with investors in various schemes floated by the firm and its other group companies. Investigation further revealed that the CMD of Kalpataru Group, Jai Krishna Singh Rana, started collecting deposits from the public fraudulently by giving them assurance for registration of plots.
According to sources, Rana and his other directors shifted the same business of collective investment scheme in newly incorporated companies to hide the fraudulent activities of the company. Whenever SEBI and other agencies interfered in the schemes run by Kalpataru Group of companies, JKS Rana shifted the whole business in new companies and continued to take deposits fraudulently from the investors.
The investigation further revealed that JKS Rana incorporated more than 50 shell companies in the names of his servants, petty employees, and illiterate relatives, and collected more than Rs 1500 crore from the public. After getting the deposits in these group companies, JKS Rana and his associates siphoned off most of the funds to create benami assets. The proceeds of crime of Rs.83.96 crore invested in various properties have been provisionally attached, while a probe is underway in the case.
Benami assets are properties or assets that are held in the name of someone other than the actual owner. The term "benami" means "without a name" in Hindi. Such assets are often used to hide ill-gotten wealth or to avoid taxes. In India, the Benami Transactions (Prohibition) Act, 1988 prohibits benami transactions and provides for confiscation of benami properties.
Shell companies are businesses that have no real operations or assets but are used to carry out illegal activities such as money laundering, tax evasion, and fraud. These companies are often set up in tax havens or countries with lax regulatory regimes. They can be used to move money from one jurisdiction to another, making it difficult to trace the original source of funds.
Money laundering is a criminal activity in which illegally obtained money is disguised to look like it was obtained through legitimate means. The Prevention of Money Laundering Act (PMLA), 2002 is an Indian law enacted to prevent money laundering and to provide for confiscation of property derived from money laundering.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
