ED Conducts Raids on Builder Shashank Pandey, Seizes ₹1.95 Crore
The Enforcement Directorate has launched an investigation into Nagpur builder Shashank Pandey, seizing significant cash and assets linked to alleged fraud.
ED seized ₹1.95 crore in cash and froze bank accounts exceeding ₹40 lakh.
Pandey is accused of defrauding a senior citizen of ₹9.4 crore through fraudulent property deals.
22 mortgaged flats were sold without lender consent, leading to further legal complications.
On October 31, 2026, the Enforcement Directorate (ED) executed search operations at two sites in Nagpur associated with builder Shashank Govindprasad Pandey, owner of Prayag Developers & Builders. This action is part of an ongoing investigation into alleged money laundering activities under the Prevention of Money Laundering Act (PMLA), 2002. The raids, conducted on October 26, resulted in the seizure of ₹1.95 crore in unaccounted cash, along with incriminating documents and digital devices.
The investigation into Pandey's activities revealed serious allegations of fraud against a senior citizen widow. He reportedly entered into a development agreement that promised her ₹1.75 crore and 14 residential flats in exchange for development rights over her property. However, it is alleged that the flats intended for her were sold to third parties without her knowledge, resulting in a total financial loss of ₹9.4 crore, including ₹8.93 crore from the sale proceeds and an unpaid amount of ₹45 lakh.
In a separate case involving Divya Prayag Apartment, the ED discovered that 22 flats were mortgaged to Dewan Housing Finance Corporation Limited (DHFL) for a ₹22 crore project loan. Of this, only ₹11 crore was disbursed. Pandey allegedly sold these mortgaged flats without obtaining the necessary No Objection Certificate (NOC) from the lender, misleading buyers about the existing mortgage. This led to outstanding dues of ₹12.84 crore, prompting proceedings under the SARFAESI Act.
The ED's investigation stems from FIRs filed at Ajni and Ranapratapnagar Police Stations in Nagpur, citing violations of Sections 418 and 420 of the Indian Penal Code, 1860. The implications of these allegations are significant, not only for Pandey but also for the real estate sector in Nagpur, raising concerns about transparency and ethical practices in property transactions.
As the investigation continues, the ED is expected to delve deeper into the financial dealings of Pandey and his associates. The outcomes of these inquiries could lead to further legal actions and possibly impact the broader real estate landscape in Maharashtra, as authorities seek to clamp down on fraudulent practices.
