The ED investigation found that Rs 1,175.86 crore was allegedly taken out of the project. (File Photo)Over Rs 1,300 crore — half of the total money collected from about 4,600 Delhi and Gurgaon homebuyers — was allegedly laundered by Raheja Developers for non-construction purposes, said the Enforcement Directorate.According to sources, this is among the core allegations in the prosecution complaint filed on November 6 by the ED against builder Raheja Developers Ltd., its promoters Navin M Raheja and Nayan N Raheja, and 18 others for laundering homebuyers’ funds worth Rs 1,353.26 crore.Filed before a Special PMLA court in Saket, the complaint also names Navin Raheja’s wife and children.As per the ED complaint, sources said, a total of Rs 2,699.13 crore was collected from homebuyers and investors for residential and commercial projects in Delhi and Gurugram on the promise of timely delivery. However, the agency alleged that a substantial portion of these funds was diverted instead of being used to complete the projects, most of which remain unfinished.Where the money wentAccording to sources, the ED investigation found that Rs 1,175.86 crore was allegedly taken out of the project, escrow, and RERA accounts for purposes other than construction. Another Rs 177.40 crore collected from homebuyers in cash outside the registered agreements was also allegedly diverted.The ED claimed homebuyers’ money was diverted to companies run through employees and their relatives as nominee directors, used to buy land in the names of these companies, and moved through RERA accounts of one project to another, according to sources.Among the alleged diversions was Rs 380 crore transferred to Arabtec Construction (India) Pvt Ltd, a joint venture between Raheja Developers and Dubai-based Arabtec LLC. The ED alleged that the vendors to whom Arabtec claimed to have made payments for construction materials did not exist.Story continues below this adSources said as per the agency’s probe, funds were allegedly diverted to other related entities, including Rs 124 crore to RIEPL, Rs 100 crore to Riyasat Palaces and Rs 100 crore to Enkay Buildwell, Rs 63 lakh to Raheja Mall and Rs 15 crore to RBPL. The money was allegedly used to purchase land, repay loans and make payments to individual accounts under the guise of salaries, rather than complete the projects.It was also alleged, as per sources, that funds to the tune of Rs 11.87 crore was transferred to the personal bank account of Navin M Raheja “under the guise of salary”.Case based on homebuyers’ complaintsThe ED’s case was lodged on March 31, 2022, on the basis of multiple FIRs registered by the Economic Offences Wing, Delhi Police, and Gurugram Police against Raheja Developers Ltd. and its directors under offences of criminal breach of trust, cheating, criminal conspiracy and forgery among others.These FIRs had been lodged on multiple complaints of homebuyers who had paid for flats and commercial units in projects of the group but had received neither possession nor refund.Story continues below this adThe accused persons allegedly didn’t comply with repeated summonses issued to them by the agency, following which it filed an application in court seeking non-bailable warrants against them.On September 19, Nayan Raheja’s anticipatory bail plea was dismissed by the Special PMLA Judge.Nirbhay Thakur is a Senior Correspondent with The Indian Express who primarily covers district court... Read More