ED arrests Vatika Group CMD, promoter in PMLA case
The Enforcement Directorate has arrested the chairman and promoter of Vatika Group in connection with a money-laundering case involving the non-delivery of residential plots. The agency alleges that funds collected from buyers were diverted to shell companies rather than being used for project development.
Why it matters
This case highlights systemic issues in the Indian real estate sector regarding fund diversion and the protection of homebuyer investments.
The Enforcement Directorate (ED) has arrested Vatika Limited chairman-cum-managing director Anil Bhalla and promoter Gautam Bhalla in an alleged money-laundering case linked to allegations of fraudulent inducement and non-delivery of residential plots.
The ED case under the Prevention of Money Laundering Act (PMLA) is based on multiple First Information Reports registered by the Economic Offences Wing of the Delhi police.
Between 2010 and 2012, seven purchaser entities paid ₹260 crore upfront to Vatika Limited as the entire sale consideration for residential plots in its Vatika India Next projects in Sectors 84/85 and Vatika India Next-2 in Sector 88A, Gurugram. Plot-wise agreements were subsequently executed in 2014 and 2015, the agency said.
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