Nagpur: The Enforcement Directorate (ED) conducted search operations at two locations in Nagpur on October 26 under the Prevention of Money Laundering Act (PMLA), linked to Shashank Govind Prasad Pandey, proprietor of M/s Prayag Developers & Builders, officials said in a statement issued on Saturday, October 31. The searches led to the seizure of unaccounted cash amounting to Rs 1.95 crore and the freezing of bank balances worth more than Rs 40 lakh.
Source: IANS via HiIndia
According to the ED statement, the searches also recovered voluminous incriminating documents and records and digital devices, and led to the identification of several immovable properties, collectively valued at crores of rupees, suspected to have been acquired from the proceeds of crime. The ED investigation was initiated on the basis of FIRs registered at Ajni Police Station and Ranapratapnagar Police Station in Nagpur for offences under Sections 418 and 420 of the Indian Penal Code. All of these are agency allegations at this stage and have not been proved in court.
Widow's flats allegedly sold off, Rs 9.4 crore loss alleged
In one instance cited by the agency, Pandey entered into a development agreement for land owned by a senior citizen widow, under which he was obligated to pay her Rs 1.75 crore and allot 14 residential flats. Although the flats had been earmarked in her favour through a Declaration-cum-Correction Deed, the ED alleges he fraudulently cancelled the deed without her knowledge or consent and sold the earmarked flats to third parties. The agency says the sale proceeds of Rs 8.93 crore were misappropriated and a further Rs 45 lakh payable under the agreement was withheld, resulting in an aggregate wrongful loss of Rs 9.4 crore to the complainant.
Mortgaged flats allegedly sold without disclosure
In a second case, relating to the Divya Prayag Apartment project, the ED says 22 flats had been mortgaged to Dewan Housing Finance Corporation Limited (DHFL) against a project loan of Rs 22 crore, of which Rs 11 crore was disbursed. Pandey allegedly sold the mortgaged flats without obtaining the lender's No Objection Certificate and without disclosing the mortgage to the purchasers. Outstanding dues of Rs 12.84 crore were subsequently reported and proceedings under the SARFAESI Act were initiated, according to the agency.
Source: NationPress
The ED said its investigation is underway and further details are awaited. Pandey's response to the allegations was not part of the agency statement, and the allegations remain to be tested in court.