R K Arora, the chairman and owner of the real estate firm Supertech, was detained by the Enforcement Directorate (ED) on Tuesday on suspicion of money laundering, according to official sources. Following a third round of interrogation at the federal agency’s headquarters, Arora was arrested under the criminal provisions of the Prevention of Money Laundering Act (PMLA), they added.
He is scheduled to appear in front of a special PMLA court here on Wednesday, where the ED would seek extended remand. The money-laundering case against the Supertech group, its directors, and promoters is the result of a slew of FIRs filed by police agencies in Delhi, Haryana, and Uttar Pradesh. The ED had attached assets worth more than Rs 40 crore of the real estate business and its directors in April.
Investigations revealed that the Supertech Group of Companies accepted funds from customers while also securing bank loans to fund the construction of apartments. However, it is claimed that the money was stolen and used to purchase land. After then, the land was mortgaged to pay back the banks’ debt. The Supertech Group also fell behind on payments to banks and other financial institutions, according to ED’s report on its investigation. As a result, 1,500 crore worth of loans became non-performing assets.
