The ED raided eight premises linked to ROF Group chairman Mangal Sain Mittal in a Rs 90.5-crore housing society fraud. Assets worth Rs 6.63 crore, including cash and gold, were seized in Delhi, Faridabad, and Gurgaon under the PMLA.
The Enforcement Directorate (ED) has conducted searches at eight residential and business premises linked to ROF Group chairman Mangal Sain Mittal along with Anil Sharma, their associates and business entities, in connection with an alleged Rs 90.5-crore fraud involving Shanti Niketan Co-operative Group Housing Society Ltd (CGHS).
Over Rs 6.6 Crore in Assets Seized
In the searches carried out on July 9, the agency claimed to have recovered and seized digital devices, incriminating documents, property papers, audited financial statements and accounting records. The federal agency also seized assets valued at about Rs 6.63 crore, including Rs 55 lakh in cash, gold bullion worth Rs 1.85 crore, gold jewellery worth Rs 1.95 crore, and around 100 kg of silver valued at Rs 2.28 crore. Several bank accounts linked to the accused were also frozen, it further said.
The raids were carried out across Delhi, Faridabad and Gurgaon under the Prevention of Money Laundering Act (PMLA).
Probe Based on FIR Against Mittal and Associates
The searches were conducted based on a First Information Report (FIR) registered at Sushant Lok police station against Mittal, Anil Sharma, Arun Sharma and others on allegations of defrauding members of the cooperative housing society.
ED Outlines Modus Operandi of Fraud
In a statement, ED said its investigation found that Mangal Sain Mittal, who was then president of the society, allegedly conspired with Anil Sharma and Arun Sharma, directors of Connoisseur Infrabuild Pvt Ltd (CIPL), to fraudulently take control of the society, misappropriate members’ funds, induct forged members, conceal official records and subsequently abandon the housing project after collecting substantial sums from homebuyers.
The agency alleged that while the society had approval for 98 memberships, the accused illegally sold 34 additional memberships. Flats were allegedly sold at Rs 3,500-4,000 per square foot through a dual-payment mechanism involving both banking channels and cash collections.
The ED said its probe has so far traced collections of around Rs 90.5 crore, including payments received through official bank accounts and cash.
“Investigators further alleged that society funds were diverted to business entities controlled by the accused. Analysis of bank accounts indicated subsequent layering of transactions, including around Rs 12 crore in cash deposits into the accounts of Connoisseur Infrabuild Pvt Ltd and Anil Sharma,” said the ED. (ANI)
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