Rs 7794 Crore Homebuyer Fund Diversion: ED Seizes 347 Acres Of Unitech Golf & Country Club Land

New Delhi: The Enforcement Directorate has provisionally attached properties worth Rs 634.12 crore linked to the Unitech Golf & Country Club project in Noida under the Prevention of Money Laundering Act, the agency said on Thursday.

According to an ED press release, the Headquarters Investigation Unit issued a Provisional Attachment Order on Wednesday, covering leasehold rights over approximately 347.83 acres of land in Sectors 96, 97 and 98, Noida, and equity shareholdings held through consortium/Special Purpose Company structures involving Sungrace Products (India) Pvt. Ltd. of Uflex Group and CIG Infrastructure Pvt. Ltd.

The ED said the attached properties represent proceeds of crime generated through the diversion of funds of homebuyers and financial institutions. The present fair market value of the attached properties in the UGCC project is Rs 8,115 crore.

The ED initiated its investigation based on 76 FIRs registered by Delhi Police and CBI against Unitech Limited, its promoters/directors and others under various sections of IPC, 1860 and the Prevention of Corruption Act, 1988, relating to cheating, criminal conspiracy and diversion of homebuyers' funds.

Investigation revealed that out of Rs 16,075.89 crore received by Unitech Limited from homebuyers, investors and financial institutions, funds amounting to Rs 7,794.35 crore were diverted for non-mandated purposes, the agency stated.
ED further found that Sungrace Products (India) Pvt. Ltd. and CIG Infrastructure Pvt. Ltd. derived and continued to retain substantial economic interest in the UGCC project without corresponding financial contribution towards acquisition or development of the project.

So far, ED has attached 1,296 movable and immovable properties having a total value of Rs 2,281.07 crore in the Unitech matter. One main prosecution complaint and two supplementary prosecution complaints have already been filed before the Special PMLA Court in Delhi.

The ED said it remains committed to securing and restituting the proceeds of crime to innocent victims of financial crime and lawful claimants in a transparent and expeditious manner.

Further investigation is underway.