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The Enforcement Directorate (ED) has filed a chargesheet against Gurugram-based realty firm Krrish Realtech Private Limited and its promoter, Amit Katyal, for allegedly diverting INR 205 crore of homebuyers' funds to a hotel project in Colombo, Sri Lanka. The ED's investigation, which is based on an FIR from Delhi and Gurugram Police, found that the company had collected over INR 500 crore from more than 400 customers for a project that was never completed. The diverted funds were funneled through a complex network of shell companies, highlighting a systematic fraud that has been under investigation since 2023.
The Enforcement Directorate (ED) has filed a chargesheet against Gurugram-based realty firm Krrish Realtech Private Limited and its promoter, Amit Katyal, for allegedly diverting homebuyers' funds to a hotel project in Colombo, Sri Lanka. The chargesheet, which was filed in a special court under the Prevention of Money Laundering Act (PMLA), alleges that the company collected over INR 500 crore from more than 400 customers for a residential project in Gurugram but never delivered the plots. The ED's investigation has found that the funds were fraudulently diverted for personal use and for the development of a luxury hotel in Sri Lanka's capital city. Advertisement
The money laundering case stems from FIRs filed by the Economic Offences Wing (EOW) of Delhi and Gurugram Police against Katyal and his associates. The ED found that the company had collected funds from homebuyers without valid licenses and then used a network of "shell companies" to divert INR 205 crore to a Sri Lankan firm for the hotel project. Some of the funds were also used to purchase properties in the name of Katyal's family members and front companies. The ED has provisionally attached assets worth more than INR 224 crore in connection with the case, including the luxury hotel in Colombo and land in Gurugram's Sector 63, 65, and 70.
Katyal, who was arrested in 2023 in a separate money laundering case, has been accused of creating a complex financial network to conceal the origin of the illicit funds and project them as legitimate assets. The ED's investigation also found that the list of plot buyers submitted before a Supreme Court-appointed committee was falsified to the promoter's advantage. This systematic fraud has left hundreds of homebuyers in financial and emotional distress, as construction on the promised project has been stalled for over 13 years. The ED's ongoing investigation is a significant step in the crackdown on bank fraud in the real estate sector and highlights the challenges faced by homebuyers in a market plagued by illegal practices.
Source: PTI
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