The Enforcement Directorate (ED) on Wednesday arrested Praveen Kansal and Neeraj Kansal, promoters of a prominent real estate group in Mohali, in connection with a money laundering investigation. The arrests stem from a case registered under the Prevention of Money Laundering Act (PMLA), linked to allegations of cheating and criminal conspiracy against homebuyers.
Background of the Case
The ED initiated the probe based on multiple FIRs filed by the Punjab Police against the Kansal Group and its directors for allegedly defrauding hundreds of homebuyers. The complainants claimed that the group collected crores of rupees from buyers for residential and commercial projects but failed to deliver possession or refund the amounts. Investigations revealed that the funds were siphoned off through shell companies and layered transactions.
Details of the Arrest
The ED officials conducted raids at multiple locations in Mohali and Chandigarh before taking the brothers into custody. They were produced before a special PMLA court in Mohali, which remanded them to ED custody for seven days. The agency is expected to question them about the flow of funds and the role of other entities involved.
- Praveen Kansal: Managing director of the group, accused of orchestrating the fraud.
- Neeraj Kansal: Director, allegedly involved in financial irregularities.
Modus Operandi
According to the ED, the promoters lured investors with attractive payment plans and promised high returns. They diverted the collected funds to personal accounts and related firms, leaving projects incomplete. The agency has already attached assets worth several crores, including land parcels and bank balances.
Legal Proceedings
The ED has filed a prosecution complaint before the special court, detailing the money trail. The accused face charges of money laundering, cheating, and criminal breach of trust. Further investigations are underway to trace the proceeds of crime.
This arrest marks a significant step in the ED's crackdown on real estate fraud in the region, sending a strong message to errant builders.
