Economic Fraud
ED Raids Bhutani Group: Transactions Worth Hundreds of Crores Under Scanner
The Enforcement Directorate (ED) has conducted searches at multiple locations of real estate developer Bhutani Group and WTC Builders across Delhi-NCR, including Lucknow, Noida, Faridabad, and Gurugram. The raids, linked to financial irregularities and tax evasion, have intensified scrutiny on the company, which has been on the radar of investigative agencies for some time.
The Enforcement Directorate (ED) carried out search operations at various offices of Bhutani Group and WTC Builders in Delhi-NCR, including Lucknow, Noida, Faridabad, and Gurugram. The real estate conglomerate, known for its large-scale commercial and residential projects, has been facing allegations of financial irregularities and tax evasion.
Sources indicate that the ED’s actions are part of a broader investigation into alleged violations of financial regulations and possible tax fraud. While officials have not yet disclosed complete details, reports suggest that the focus is on unaccounted transactions and financial mismanagement.
Not the First Investigation
This is not the first time Bhutani Group has come under the scanner of law enforcement agencies. In January last year, the Income Tax (IT) Department conducted extensive raids on four real estate developers in Noida, including Bhutani Group. During that operation, which lasted for six days, the IT Department seized cash amounting to Rs 1,500 crore.
Further investigations revealed that employees of Bhutani Group had hidden pen drives containing data on undisclosed financial transactions. Officials found that the company had accepted unaccounted cash worth ₹595 crore since the financial year 2019-20. Out of this, Rs 429 crore was received in the financial years 2019-20, 2020-21, and 2021-22.
Financial Troubles and Recent Developments
Despite its dominance in the commercial real estate sector, Bhutani Group has faced significant financial troubles in recent times. In November, the company acquired the ‘Logix City Center’ commercial project from PAG and Logix Group promoters for an estimated Rs 1,000 crore. However, financial reports suggest that the company incurred a loss of Rs 29.39 crore in the second quarter of the 2024-25 financial year. During this period, its operational income stood at Rs 21.70 crore.
Earlier this month, Bhutani Infra distanced itself from WTC Group, stating that it had withdrawn from any planned collaboration on current, ongoing, completed, or future projects. Bhutani Infra CEO Ashish Bhutani clarified that initial discussions with WTC Group were part of Bhutani Infra’s broader vision to contribute to India’s commercial real estate growth. However, the company has now chosen to step away, citing an independent growth strategy focused on trust, integrity, and transparency.
Ongoing Probe and Future Implications
The ED’s latest search operation in Lucknow targeted Bhutani Group’s office at Shaheed Path, reportedly investigating transactions worth Rs 500 crore. While the agency has not officially confirmed all the details, sources indicate that the scale of the operation suggests a deeper probe into the company’s financial dealings.
As Bhutani Group navigates this legal and financial storm, the real estate industry is closely watching how the investigation unfolds. With multiple agencies scrutinizing its operations, the coming weeks could determine the future trajectory of one of India’s biggest real estate firms.
This investigation adds to the growing list of real estate firms under scrutiny for financial mismanagement, raising questions about regulatory compliance in the sector. The outcome of the ED’s probe could have significant repercussions for both Bhutani Group and the broader real estate industry.
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