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The Enforcement Directorate on Wednesday carried out searches at three locations linked to Bengaluru-based real estate firm Aryan Hometec Private Limited in connection with an alleged ₹90-crore fraud and money laundering investigation. The search operations focused on the premises of the company’s directors, Bharath Reddy and Rashmi Bharath Reddy, yielding what officials described as incriminating documents and financial records. The federal financial probe was initiated on the basis of multiple police complaints registered by a landowner, institutional lenders, and homebuyers. The complainants alleged widespread financial manipulation, cheating, and diversion of construction capital across two major residential developments. The action has also drawn attention because local police had previously filed ‘C’ reports in several related cases after declaring the accused untraceable, whereas federal investigators established their whereabouts prior to conducting the searches.
Landowner Burdened by Defaulted Corporate Liabilities
According to the findings gathered by investigators, Aryan Hometec entered into a Joint Development Agreement with a local landowner, B.G. Anjinappa, to construct two residential undertakings named Aryan Fountain Square and Aryan Golden Arena. Under the terms of the formal arrangement, the development company was allotted a 63 per cent interest, while the remaining 37 per cent share was designated for the landowner. The agency alleged that the directors breached their commitments by failing to complete the construction and hand over the residential units legally allocated to the partner. Despite defaulting on their core contractual obligations, the directors made Anjinappa a guarantor for sizable institutional credit secured to fund the company’s commercial undertakings.
Faced with mounting liabilities from the commercial borrowings, Anjinappa was forced to settle a substantial portion of the corporate debt to retain lawful possession of his property. The landowner bore this significant financial burden without receiving the completed flats or the monetary yield promised under the partnership agreement. The agency is currently analyzing the transactional records and underlying documents to establish how the landowner was exposed to liabilities tied to company loans.
Diversion of Homebuyer Funds to Private Entities
Investigators also uncovered that the directors allegedly siphoned off around ₹90 crore that had been gathered from private investors and prospective buyers for the development of the two housing projects. Instead of directing the received payments toward the designated civil construction and project requirements, the management allegedly channeled the capital toward private relatives and commercial firms operated under their personal control. The diversion of customer deposits serves as a cornerstone of the ongoing money laundering probe. The agency is tracking fund movements, tracing intermediary accounts, and identifying the principal recipients of the diverted resources.
The searches conducted at the three residential and business addresses aimed to uncover direct financial documentation capable of mapping the movement of capital and identifying properties generated through unlawful gains. The broader case emphasizes the operational dangers faced by both individual property buyers and original landowners involved in collaborative development projects, where the siphoning of pooled resources can halt construction work and terminate legal entitlements.
Regulatory Action Follows Flawed Initial Inquiries
The agency’s intervention has also highlighted serious procedural gaps in earlier investigations, as complainants struggled to secure legal remedies while the accused evaded police scrutiny. Although local law enforcement had filed closure reports classifying the promoters as unlocatable, the central agency traced both directors before executing the search warrants. The authorities confirmed that analysis of the seized accounting books and digital records is underway to identify the complete scope of the misappropriation and locate any hidden assets financed through the siphoned money. No formal arrests or property attachments were announced immediately following Wednesday’s searches, and the central agency confirmed that further legal proceedings remain ongoing.
