Enforcement Directorate Seizes ₹1.95 Crore in Nagpur Property Case
The ED has conducted searches linked to Prayag Developers, uncovering significant cash and property irregularities.
ED seized ₹1.95 crore in cash during searches at two Nagpur locations.
Investigation involves alleged fraud in property agreements and mortgage misrepresentation.
Total estimated wrongful loss in the case is approximately ₹9.4 crore.
The Enforcement Directorate (ED) has made a significant move in Nagpur, seizing ₹1.95 crore in cash during searches at two locations associated with Shashank Govindprasad Pandey, the owner of Prayag Developers & Builders. These operations were conducted under the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing investigation into alleged financial misconduct related to property dealings.
The agency's investigation was prompted by FIRs filed at Ajni and Ranapratapnagar Police Stations in Nagpur, citing Sections 418 and 420 of the Indian Penal Code, which pertain to cheating and dishonest dealings. The ED's scrutiny has revealed serious allegations against Pandey, including a development agreement involving land owned by a senior widow, where he was supposed to pay ₹1.75 crore and allot 14 residential flats. However, the agency claims that the agreement was manipulated, leading to the unauthorized sale of these flats to third parties.
In addition to the cash seizure, the ED has frozen bank accounts containing over ₹40 lakh and identified various immovable properties valued in crores, suspected to have been acquired through illicit means. The agency estimates that the total wrongful loss in this case could reach around ₹9.4 crore, highlighting the extent of the alleged financial irregularities.
Another aspect of the investigation focuses on the Divya Prayag Apartment project, where 22 residential flats were reportedly mortgaged to Dewan Housing Finance Corporation Ltd (DHFL) for a project loan of ₹22 crore. The ED alleges that these flats were sold without proper disclosure of the existing mortgage, leading to significant financial repercussions for buyers and wrongful gains for the accused. The lender has reported outstanding dues of ₹12.84 crore, prompting further legal proceedings under the SARFAESI Act.
As the ED continues its investigation, the implications of these findings raise critical questions about the management of development agreements and the transparency required in property transactions. The agency aims to trace the financial activities linked to these alleged irregularities, which could have far-reaching effects on the real estate sector in Nagpur and beyond.
