LUCKNOW | ET Bureau: In one of its major crackdowns against financial misconduct in the real estate sector, the Enforcement Directorate (ED) has attached properties worth ₹250 crore belonging to Lala Jugal Kishore Ltd, after uncovering its alleged collusion with the controversial Rohatas Group, which is accused of defrauding hundreds of investors.
Prime Land Bought at Throwaway Prices
According to the ED investigation, the company allegedly acquired five premium land parcels in Lucknow — including plots along Sultanpur Road, Sitapur Road, and Barabanki Road — for a mere ₹18–₹20 crore, despite their market valuation at the time being between ₹125 crore and ₹150 crore.
One of the seized sites also includes an under-construction residential complex, officials said.
The agency suspects that the deal was orchestrated to launder illicit funds siphoned off from investors through the Rohatas Group’s real estate schemes.
Over ₹100 Crore Suspected in Cash Transactions
Investigators believe that more than ₹100 crore of the total payment was made in cash, in violation of the Prevention of Money Laundering Act (PMLA).
An official familiar with the case said, “This was not a legitimate property transaction but a well-structured attempt to convert black money into real estate assets under the guise of a sale.”
The seized properties, which were originally undervalued, have now appreciated to over ₹250 crore, according to ED estimates.
Rohatas Group Under Multiple Federal Probes
The Rohatas Group, a once-prominent real estate developer in Uttar Pradesh, has been under investigation for large-scale financial fraud and investor cheating.
In September 2025, the ED conducted raids at multiple premises linked to the group’s promoters in Lucknow and Noida, uncovering evidence of money laundering worth ₹248 crore.
However, the group’s directors — Piyush Rastogi, Paresh Rastogi, and Deepak Rastogi — remain absconding.
Over 80 Cases, ₹500 Crore in Investor Fraud
The group faces more than 80 criminal cases filed by aggrieved investors who allege that the company diverted over ₹500 crore collected for housing projects that were never completed.
The Central Bureau of Investigation (CBI) and the Anti-Corruption Branch in Lucknow have also lodged multiple FIRs against the promoters.
Local police had previously attached properties worth ₹100 crore, adding to the long list of enforcement actions.
ED Expands Scope of Money Laundering Probe
Officials said the agency is now tracing additional assets and benami holdings linked to the two entities.
The investigation suggests that both Lala Jugal Kishore Ltd and the Rohatas Group engaged in coordinated cash transactions to conceal illicit proceeds under the pretext of real estate investments.
“Further seizures are likely in the coming weeks as the flow of funds is mapped,” an official said, noting that several middlemen and shell firms may have facilitated the transactions.
A Broader Crackdown on Real Estate Money Laundering
The case marks one of the largest property attachment operations in northern India under the PMLA and highlights growing federal scrutiny of money laundering through land deals.
A senior ED official told
“This is not merely about one company or one transaction — it’s about dismantling an ecosystem where illegal wealth is legitimized through real estate investments.”
Analysts say the case underscores how real estate remains a preferred channel for laundering illicit funds in India. With the ED tightening its oversight, more such high-value property attachments are expected in the coming months, signaling a tougher stance on financial crimes in the real estate sector.
