The Enforcement Directorate (ED) has arrested Praveen Kansal and Neeraj Kansal, promoters of a Mohali-based real estate group, in connection with an alleged money laundering investigation linked to a large-scale property fraud case. The arrests were made under the provisions of the Prevention of Money Laundering Act (PMLA) following searches and financial investigations conducted by the agency.
According to investigators, the case involves allegations of financial irregularities, diversion of investor funds, and fraudulent transactions connected to real estate projects in Punjab and nearby regions. The ED alleged that the accused collected substantial amounts from homebuyers and investors but failed to deliver promised projects within stipulated timelines.
ED Probe Linked to Real Estate Investment Complaints
The money laundering investigation reportedly stems from multiple FIRs registered by local police authorities against the real estate group and its promoters. Investigators alleged that investors and homebuyers were induced to deposit money for residential and commercial projects that were either delayed, incomplete, or allegedly never delivered.
Officials said the ED initiated its probe after examining allegations of cheating, criminal breach of trust, and financial misconduct connected to the real estate operations. The agency is analysing banking transactions, company accounts, and investment records to trace the movement of funds.
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Alleged Diversion of Funds Under Investigation
According to the ED, preliminary findings indicate that investor funds may have been diverted through layered transactions and related business entities. Investigators are examining whether the funds collected from buyers were transferred to associated companies, personal accounts, or unrelated financial activities instead of being utilised for project development.
Authorities suspect that multiple shell entities and financial channels may have been used to route money and obscure the audit trail. Financial records, digital evidence, and property-related documents seized during searches are currently under forensic scrutiny.
Promoters Produced Before Special Court
Following their arrest, the accused promoters were produced before a special PMLA court, where the ED sought custodial remand for further interrogation. Investigators are reportedly questioning the accused regarding project finances, investor transactions, and the alleged laundering of proceeds of crime.
Officials are also attempting to identify additional individuals, financial operators, and entities linked to the alleged money laundering network. The agency may conduct further searches and financial analysis as the investigation progresses. Prevention of Money Laundering Act
Real Estate Fraud Cases Under Increased Scrutiny
The case highlights growing regulatory and enforcement scrutiny over real estate fraud allegations involving delayed projects, investor fund diversion, and financial mismanagement. Enforcement agencies across India have increasingly targeted cases where homebuyer funds were allegedly misused through shell firms and layered transactions.
Investigators are expected to continue tracing assets, financial records, and possible interstate financial links connected to the case. Further legal proceedings are likely as the ED expands its probe into the financial structure of the real estate group.
