The Enforcement Directorate (ED) is set to intensify action against Lucknow-based jewellery firms accused of purchasing prime land belonging to the Rohitash Group at heavily undervalued prices, as part of an alleged attempt to divert assets ahead of criminal proceedings. The agency is preparing to issue notices to the operators of two jewellery companies, whose names have surfaced during the probe into large-scale investor fraud linked to the group.
According to sources, several parcels of land worth hundreds of crores, recently attached by the ED, were found to have been transferred to companies associated with the jewellers. These transactions are now under scrutiny as part of a broader investigation into alleged money laundering and asset concealment.
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The case relates to allegations that Piyush Rastogi, Paresh Rastogi and Deepak Rastogi, among other directors of the Rohitash Group, siphoned off more than ₹500 crore from investors. As complaints mounted and criminal cases began to be registered, the accused allegedly orchestrated a plan to dispose of key land assets before stringent provisions, including the Gangster Act, could be invoked against them.
Investigators believe that a significant portion of the group’s land was sold in haste through intermediaries, with transactions structured to understate the actual value of the properties. The ED is now collecting detailed records of these land deals, including ownership trails and payment structures.
On Friday, the ED attached properties worth approximately ₹350 crore linked to the Rohitash Group. Among these were several land parcels registered in the names of companies associated with the jewellers. Preliminary findings indicate that land valued at nearly ₹110 crore was acquired by the jewellery firms, while official documentation reflected a purchase price of only ₹40 crore.
Sources said the remaining amount was allegedly routed through other channels, described in records as payments under separate heads. Agents involved in facilitating the transactions are also suspected to have earned substantial commissions. The ED is examining bank records and agreements to establish the flow of funds and determine whether the transactions were designed to launder proceeds of crime.
The Rohitash Group had launched two major township projects — the Sultanpur Road Project and the Raebareli Road Project — offering residential plots to investors. Buyers were promised either possession of plots within 30 months of booking or a lump-sum payout equivalent to 150% of the invested amount if the delivery was delayed.
According to investigators, the schemes attracted a large number of investors, leading to the collection of hundreds of crores of rupees within a short span. However, neither plots were delivered nor refunds issued. As complaints began pouring in, investors approached law enforcement agencies, resulting in the registration of multiple cases.
Over time, as many as 83 FIRs were lodged against the Rohitash Group. Based on these predicate offences, the ED initiated a money laundering investigation under the Prevention of Money Laundering Act (PMLA).
During the course of the probe, the agency uncovered evidence suggesting that land assets were transferred to third parties shortly after legal action appeared imminent. Two companies linked to the same group had their land holdings seized last year as part of this ongoing investigation.
Another key aspect of the probe relates to the ownership structure of the jewellery firms involved. ED officials found that individuals listed as directors or office bearers in these companies were either relatives or close associates of the jewellers, raising suspicions of benami ownership and layered transactions.
The agency has taken custody of documents related to the attached properties and is analysing them to determine the extent of financial irregularities. Officials indicated that questioning of the individuals linked to these firms is expected in the coming days.
Sources said the focus of the investigation is not only on recovering assets but also on identifying those who allegedly benefited from undervalued purchases and assisted in concealing proceeds derived from investor funds.
The ED’s next steps are expected to include further attachments, issuance of summons, and expanded scrutiny of intermediaries involved in the land deals, as the agency works to reconstruct the full trail of assets linked to the alleged fraud.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
