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Business News/ Companies / People/  ED arrests M3M promoter Roop Bansal under PMLA over money laundering allegations

The Enforcement Directorate (ED) has apprehended Roop Bansal, the promoter of real estate firm M3M, in connection with a case under the Prevention of Money Laundering Act (PMLA). The arrest follows search operations conducted by the ED at seven locations in Delhi and Gurugram, which were linked to real estate developers IREO Group and M3M Group.

According to officials, the investigation was initiated against these firms for alleged diversion, siphoning off, and misappropriation of funds. The ED has identified instances of money laundering amounting to over 400 crore involving IREO Group and M3M Group

Multiple FIRs have been registered against IREO Group, prompting ED investigation into the matter. 

The central agency stated, "The investigations conducted by ED showed that in one of the transactions, M3M Group received about 400 crore from IREO Group through several shell companies in multiple layers. The transaction was shown in the books of IREO as payments towards development rights."

The ED added that a land was owned by the M3M group, and the market value of the land was around 4 crore.

"M3M Group initially sold the development rights of the said land to five shell companies for a payment of 10 crore. It was claimed that the five companies are unrelated companies. Investigations show that the five shell companies were operated by M3M Group."

Subsequently, these shell companies purportedly sold the development rights of the same land to IREO Group for approximately 400 crore.

The proceeds received from IREO Group were allegedly transferred back to M3M Group through multiple layers of transactions facilitated by the shell companies. The ED stated, "All the shell companies were owned and operated by M3M Group under the directions of its promoters Basant Bansal and Roop Kumar Bansal and his family members. 

In this way, IREO and M3M siphoned off about 400 crore money belonging to investors/customers, and the proceeds of crime remained with M3M Group, which was used by M3M for other investments/paying off liabilities."

During the search operations, the ED seized 17 high-end luxury vehicles with an acquisition value of over 60 crore, jewellery and bullion worth 5.75 crore, cash amounting to 15 lakh, and various incriminating documents, digital evidence, and books of accounts. The ED also alleged that the IREO Group failed to undertake any development activities on the land and consistently wrote off investments each year.

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Updated: 09 Jun 2023, 03:44 PM IST
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