The Enforcement Directorate (ED) has seized ₹1.95 crore in unaccounted cash during searches linked to a Nagpur-based builder accused of cheating an elderly woman of approximately ₹9.4 crore in a property development deal. The agency also froze bank balances exceeding ₹40 lakh and identified several immovable properties suspected to have been acquired using proceeds of crime.
The searches were conducted at two locations in Nagpur district as part of a money laundering investigation.
What Did the ED Recover During Searches?
ED officials recovered cash, documents and digital devices during searches conducted last week. The agency also identified properties suspected to be connected with the alleged financial irregularities.
Investigators are examining financial records and transactions to determine how the money was transferred and whether the suspected proceeds were used to acquire other assets.
How Was the Elderly Woman Allegedly Cheated?
According to the ED, the builder entered into a development agreement with an elderly widow, promising ₹1.75 crore and 14 residential flats in exchange for development rights over her land.
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However, the flats earmarked for the woman were allegedly sold to third parties after the developer cancelled the declaration deed without her knowledge or consent.
Investigators alleged that sale proceeds worth ₹8.93 crore were misappropriated, while another ₹45 lakh promised to the woman remained unpaid. The total alleged financial loss was estimated at approximately ₹9.4 crore.
What Other Property Irregularities Were Found?
The ED also uncovered alleged irregularities involving 22 flats in a high-rise residential building.
These flats had reportedly been mortgaged but were subsequently sold to third parties without clearing the outstanding liabilities.
According to investigators, the unpaid dues reached ₹12.84 crore, prompting proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
How Did the Investigation Begin?
The money laundering investigation originated from FIRs registered at Ajni and Rana Pratap Nagar police stations. The complaints involved allegations of cheating and dishonest transactions, including the delivery of property.
The ED subsequently began tracing suspected proceeds of crime and examining financial dealings associated with the builder. The investigation remains underway to establish the movement and possible utilisation of the funds.
The420 Insight: What Does This Case Highlight?
The case highlights the financial risks associated with property development agreements, particularly when promised flats are sold without the landowner’s consent.
Property owners should verify contractual safeguards, maintain documentation and monitor changes affecting their development rights. The investigation also underlines the importance of examining property transactions and financial records when suspected fraud involves substantial assets.
