ED Files Second Supplementary Prosecution Complaint Against Unitech Promoters for Money Laundering

The Enforcement Directorate (ED) has launched a Second Supplementary Prosecution Complaint under the Prevention of Money Laundering Act (PMLA), filing it on July 10 in a Special Court. This filing targets Ramesh Chandra and multiple companies including M/s Shivalik Ventures Private Limited and others, as part of a substantial investigation into alleged financial misconduct and money laundering associated with Unitech Limited and its leadership.

The probe began after the Central Bureau of Investigation (CBI) and Delhi Police registered First Information Reports (FIRs) that rely on multiple sections of the Indian Penal Code and the Prevention of Corruption Act. Key figures involved are the promoters of Unitech—Ramesh Chandra, Sanjay Chandra, Preeti Chandra, and Ajay Chandra—along with additional individuals and entities implicated in the investigation.

This supplementary complaint is vital as it addresses the alleged deception of over 29,800 homebuyers, who invested their savings in various Unitech housing projects, only to see no delivery of promised homes after extended waiting periods. The ED's investigation has revealed a significant criminal conspiracy, indicating that promoters, in partnership with collaborators, misappropriated funds collected from buyers.

The ED’s findings indicate that Unitech amassed over Rs 16,075.89 crore from homebuyers and financial institutions, with approximately Rs 7,794.35 crore misappropriated for unauthorized purposes. Evidence points to Ramesh Chandra and his family orchestrating fund diversions into unnamed firms and personal entities through various deceitful techniques.

These techniques include acquiring shares at inflated prices and funneling money to companies such as Carnoustie Management Pvt. Ltd. and the Shivalik Group, as well as manipulating venture capital. Moreover, the investigation revealed that the proceeds of crime were laundered internationally, using a network of shell companies in locations like the UAE, Cayman Islands, and Singapore. The agency also reported that assets acquired abroad, including three flats in Dubai via misallocated funds, further underline the systemic financial misconduct.

So far, the ED has identified proceeds of crime totaling Rs 1,621.91 crore, confirming the attachment of 1,291 properties through 21 Provisional Attachment Orders. With this latest prosecution filing, the total number of charged individuals and entities has reached 105 across three prosecution complaints. A court date has been set for July 31 to review the charges presented by the ED.