ED files charge sheet against SRS group, promoters in money laundering case

The Enforcement Directorate has filed a charge sheet against the SRS group and its promoters in a money laundering case linked to alleged cheating of homebuyers and investors.

Nineteen accused persons and entities, including SRS group chairman Anil Jindal and company directors Jitender Kumar Garg, Praveen Kumar Kapoor and Vinod Jindal, have been named in the prosecution complaint filed under various sections of the Prevention of Money Laundering Act (PMLA), the agency said in a statement.

The complaint has been filed before a special PMLA court in Gurugram and the court took cognisance on October 31, it said.

"The accused duped innocent buyers by promising them to deliver flats, plots, commercial spaces etc. however, they failed to deliver the projects. The real estate projects were mortgaged to avail loans from banks and other financial institutions," the Enforcement Directorate (ED) said.

However, it added, the loans were not used for the intended purposes and were defaulted, eventually turning into non-performing assets.

The "accused persons of SRS group also lured investors to invest into SRS group ponzi schemes with unsustainable returns in the form of very high interest/jewellery on their investments," the federal agency said.

"The interests on such investments were paid only for few months and later accused gave post-dated cheques to investors, which were not honoured," the ED alleged.

Funds so accumulated, it said, from the buyers and investors were "layered" into number of shell companies created by SRS group and were subsequently "siphoned off" to acquire assets in personal names and in the name of entities controlled by them.

"The total proceeds of crime identified in the case till now stands at Rs 2,215.98 crore," it said.

The money laundering case stems from as many as 81 FIRs filed by the Faridabad Police in Haryana and the Delhi Police against the group and its promoters.