The Directorate of Enforcement (ED) has provisionally attached immovable properties worth Rs. 71.48 Crore of M/s Hindustan Infracon (India) Private Ltd in Mysore, Bengaluru South (Karnataka), and Ananthpura (Andhra Pradesh) in a fraud case under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
The ED launched an inquiry based on FIRs filed by Karnataka State Police in several districts of Karnataka against M/s Hindustan Infracon India Private Ltd. and its directors under various sections of the Indian Penal Code.
The ED investigation found that the accused people, with the malicious goal of defrauding the general public, fraudulently collected Rs. 389 Crore in funds/deposits from 7,18,817 investors, with the promise of high rates of return on investments. However, the accused failed to repay the Rs. 199 Crore to the investors, defrauding the general public.
According to the ED probe, M/s. Hindustan Infracon India Ltd. misappropriated cash from investors and paid M/s Bharath Builders, M/s Hindustan Mega Shoppe India Ltd. (sister firm), Mrs. K. Lalitha, and M/s Vajra Properties. This money was used to acquire immovable property, withdraw cash, and so be used for personal advantage. The ED is continuing its investigation into the case to identify and attach other assets of the accused persons and to determine the extent of money laundering involved.
