ED Intensifies Legal Action Against Real Estate Firm in Major Money Laundering Probe
The Directorate of Enforcement (ED), through its Lucknow Zonal Office, has escalated its legal proceedings against real estate company M/s Unnati Fortune Holdings Limited (UFHL) by filing a Supplementary Prosecution Complaint. This significant legal document has been submitted before the Court of the Special Judge, Anti-Corruption, CBI, in Ghaziabad, invoking Sections 44 and 45 along with Sections 3, 4, and 70 of the Prevention of Money Laundering Act (PMLA), 2002.
Comprehensive Investigation Based on Multiple FIRs
The money laundering investigation was initiated by the ED following multiple First Information Reports (FIRs) registered by the Uttar Pradesh Police. These FIRs were filed under various sections of the Indian Penal Code, 1860, targeting UFHL, its main promoter Anil Mithas, Madhu Mithas, and other key officials associated with the company. The agency's thorough probe has uncovered substantial evidence of financial irregularities.
Alleged Diversion of ₹126 Crore Through Complex Schemes
According to the ED's investigation findings, Anil Mithas, serving as the main promoter and key decision-maker of UFHL, allegedly orchestrated the diversion of approximately ₹126 crore between 2011 and 2019. This substantial sum was reportedly moved through what the agency describes as "colourful devices" of money laundering.
The sophisticated methods employed included:
- Routing funds as equity investments to related parties
- Transferring money through preference shares, debentures, and bonds
- Providing loans and advances to connected entities
- Utilizing security deposits as channels for fund movement
The ED asserts that these funds were systematically siphoned from multiple bank accounts of UFHL, where money had been collected from homebuyers and investors specifically for real estate projects. This large-scale diversion and siphoning operation directly impacted the completion of housing projects undertaken by the company, resulting in numerous stalled and incomplete developments.
Widespread Financial Impact and Legal Consequences
The alleged misappropriation has caused substantial financial losses to multiple stakeholders, including homebuyers who invested their savings, various investors who supported the projects, and financial institutions that provided funding. Meanwhile, the promoters and directors of UFHL are accused of generating wrongful gains through these activities.
Anil Mithas was arrested by the ED on April 16, 2025, and remains in judicial custody. Following his arrest, the agency conducted coordinated searches at multiple premises linked to UFHL and its promoters on April 17, 2025. These operations resulted in the seizure of incriminating documents and crucial digital evidence that further substantiates the money laundering investigation.
Asset Attachment and Previous Legal Proceedings
The ED has confirmed that, to date, movable and immovable assets worth approximately ₹126 crore belonging to UFHL, its promoters, and associate entities have been provisionally attached under the provisions of the PMLA. This measure represents a significant step in securing the allegedly laundered funds.
Earlier in the legal process, the ED filed its first Prosecution Complaint on June 13, 2025, before the Special Judge, Anti-Corruption, CBI, Ghaziabad, targeting UFHL and promoter Anil Mithas. The court took cognizance of this initial complaint on August 18, 2025. The newly filed supplementary complaint aims to present additional evidence and further details regarding the alleged proceeds of crime and money laundering activities before the judicial authority.
The investigation remains ongoing as the ED continues to examine the complex financial transactions and corporate structures involved in this case. The agency's persistent efforts highlight the government's commitment to combating financial crimes and protecting investor interests in the real estate sector.
