ED attaches properties of VGN developers worth Rs 115 crores

The Enforcement Directorate (ED) on Saturday attached immovable properties of VGN developers Private Limited worth Rs 115 crores at Guindy in Chennai.

The properties were attached under the provisions of Prevention of Money Laundering Act, 2002 (PMLA).

VGN Developers purchased 10.46 acres of land in Chennai in 2013 from Hindusthan Teleprinters Limited (HTL), a Government of India Undertaking.

The Central Bureau of Investigation (CBI), the Anti Corruption Bureau (ACB) has registered against VGN Developers for the wrongful loss of Rs 115 crore caused to the Government of India in the acquisition of land at Guindy from State Bank of India, Stressed Assets Management Branch, Chennai.

The property was bought through a private treaty sale under SARFAESI Act to recover the dues of HTL, a public sector undertaking.

The CBI, ACB Chennai, in their FIR alleged that the that the bank officials, company representatives, and the buyers conspired to sell the land having a guideline value of Rs 387 crore for a sale price of Rs 272 crore and hence causing loss of Rs 115 crore to the government.

The ED in its investigation identified that the proceeds of crime in the form of wrongful gain derived by VGN Developers, which has been integrated into the construction of multi-storied residential apartments at Guindy, for sale to general public in the name of VGN Fairmont.