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May 30, 2024

Unsold Spaces in Noida’s GIP Mall Seized by ED in Rs 400 Crore Fraud Case

The Enforcement Directorate (ED) has taken significant action in a Rs 400 crore cheating case, provisionally attaching properties worth Rs 291.18 crore belonging to International Amusement Limited. The Gurugram unit of the ED announced on Thursday that the attached properties include unsold commercial spaces at the Great India Place Mall (GIP) in Noida, among other locations.

In addition to the GIP Mall in Noida, the ED has attached commercial properties in the name of Adventure Island Limited in Rohini and leasehold rights over 218 acres of land in Jaipur. These actions were taken under the Prevention of Money-laundering Act (PMLA), 2002, through a provisional order dated May 28. The unsold commercial space attached in the Noida mall spans a substantial 393,737.28 square feet.

The investigation was initiated based on FIRs registered by the Gurugram Police against International Recreation and Amusement Ltd. (IRAL) and its associated concerns, which were accused of cheating and criminal conspiracy. IRAL had allegedly collected over Rs 400 crore from approximately 1,500 investors under an affordable housing scheme, promising the allotment of shops and spaces in Sector 29 and Sector 52-A in Gurugram. Despite these promises, the entity failed to deliver the project and consistently missed deadlines. Moreover, the monthly assured return payments to investors were not made as promised.

According to the ED’s press release, the investigation revealed that IRAL siphoned off the investors’ money for personal gains. A backdated agreement was allegedly executed between the promoter directors and the buying entity, EOD, to remove the business advance from IRAL’s balance sheet. This maneuver allowed the departing directors to evade their responsibilities towards IRAL.

The ED’s attachment of properties is a provisional measure aimed at preventing further dissipation of assets while the investigation continues. The case highlights significant lapses in financial management and accountability, and further scrutiny is anticipated as the probe agency continues its investigation.

The ED’s actions underscore the seriousness with which financial crimes and money laundering activities are treated under Indian law. By attaching significant assets and exposing the fraudulent activities of entities like IRAL, the ED aims to ensure that investors’ interests are protected and that those responsible for such fraud are held accountable.

This development serves as a critical reminder for investors to exercise caution and due diligence before investing in schemes promising high returns. It also reflects the stringent measures being taken by regulatory authorities to clamp down on fraudulent activities and safeguard the financial ecosystem from such deceptive practices.

The investigation into this case is ongoing, and the ED is expected to uncover more details as they delve deeper into the fraudulent activities and financial misconduct of IRAL and its associated concerns. As the investigation progresses, more actions and legal proceedings are likely to follow, potentially leading to significant legal consequences for those involved.

In summary, the attachment of unsold commercial spaces in Noida’s GIP Mall and other properties by the ED marks a critical step in addressing the Rs 400 crore cheating case. The ongoing investigation will continue to reveal the extent of the fraud and the steps needed to ensure justice for the defrauded investors.

Read more latest news related news on R9 News

Jhumpa Lahiri

Jhumpa Lahiri

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