Shell Cos, Fake Loans & Betrayed Buyers: Inside Noida's Real Estate Scandal

Lucknow: Enforcement Directorate (ED) conducted extensive search operations at eight locations across Agra, Meerut, Noida, and Delhi in connection with a large-scale financial fraud involving M/s Unnati Fortune Holdings Limited (UFHL) and its promoter, Anil Mithas.

In a significant development, the ED has taken Anil Mithas into custody for seven days, following an order by the court.

During the recent raids, the agency recovered crucial documents, sale deeds, investment records, and digital evidence, which are currently under scrutiny, the ED said in a statement.

Officials said the evidence will be used to confront Mithas during interrogation as efforts continue to track the diverted funds.

According to the statement, the searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, targeting residential and office premises associated with UFHL and related entities.

ED officials said the operations aimed to trace and seize the "Proceeds of Crime" allegedly siphoned off by Anil Mithas and collect evidence of financial irregularities.

The investigation followed multiple FIRs lodged by Uttar Pradesh Police and the Delhi Economic Offences Wing against UFHL, its promoters, and others under various sections of the Indian Penal Code.

The ED has alleged that UFHL collected a staggering Rs522.90 crore from homebuyers between 2012 and 2019 for a residential and commercial project named Aranya, located in Sector-119, Noida.

Despite the massive inflow of funds, the project failed to meet its construction deadlines, leading to widespread complaints by homebuyers to forums such as UP-RERA and local police, said the release.

In 2018, the situation escalated when a financial creditor filed for insolvency proceedings against the company at the National Company Law Tribunal (NCLT), Delhi, a case that remains pending.