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The Enforcement Directorate (ED) in India has frozen 119 bank accounts, two luxury vehicles, and some insurance policies under the anti-money laundering law after raiding the promoters of Agrani Homes Pvt. Ltd. The company is alleged to have duped numerous home buyers by illegally diverting their deposits for acquiring properties in their personal names or in the name of other companies. Searches were launched on April 18 at eight locations of the company, including the residences of its CMD Alok Kumar Singh, Vijaya Raj Laxmi, Alka Singh, Rana Ranveer Singh, a "key employee" Satvik Singh, and Chartered Accountant Nishat Shrivastava in Patna, Varanasi, Lucknow, and Delhi. The ED also seized sale deeds of properties purchased by Alok Kumar Singh in his name and in the name of his company.
The money laundering case against the company and its promoters was filed under the provisions of the Prevention of Money Laundering Act (PMLA) and stems from at least eight FIRs filed by the Bihar Police. More than 73 complaints against Agrani Homes Pvt. Ltd., Patna, CMD Singh, and others were received by the ED, where it was mentioned that the said company "cheated" prospective home buyers of a sum of Rs 9.73 crore.
The ED has taken strict action against the Agrani Homes case as the real estate sector in India has seen a lot of fraudulent practices in recent years. The sector has been hit by various scams, such as the Amrapali Group case, which is considered one of the biggest scams in the history of India's real estate sector. The company allegedly diverted funds collected from homebuyers to other businesses, including a Bollywood film. The Supreme Court had ordered the seizure of all properties of the Amrapali Group and the arrest of its directors and appointed the State Bank of India to complete the unfinished projects of the group.
In another case, Unitech Group, one of India's largest real estate firms, had been accused of delaying the completion of its projects and was taken over by the government in 2019 to complete the unfinished projects of the group. The government had also directed the National Buildings Construction Corporation (NBCC) to complete the pending projects of the group. These cases highlight the need for strict laws and regulations in India's real estate sector.
In recent years, the Indian government has implemented various laws and regulations to protect homebuyers and ensure transparency in the sector. The Real Estate (Regulation and Development) Act (RERA) was passed in 2016 to regulate the real estate sector and protect the interests of homebuyers. The act makes it mandatory for all developers to register their projects with the regulatory authority and provides a mechanism for the resolution of disputes between homebuyers and developers.
Despite these measures, the real estate sector in India continues to face challenges. The COVID-19 pandemic has affected the sector severely, and many homebuyers are struggling to complete their purchases due to job losses and pay cuts. The sector is also facing a liquidity crunch, and many developers are unable to complete their projects due to a lack of funds. The government has taken several measures, including providing a one-year extension to RERA-registered projects, to provide relief to the sector.
In conclusion, the ED's action against Agrani Homes Pvt. Ltd. is a step towards ensuring transparency and accountability in India's real estate sector. It highlights the need for strict laws and regulations and the importance of protecting the interests of homebuyers. The government needs to take more measures to revive the sector and on policies that safeguard buyers against fraudulent activities.
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