ED attaches Rs 121.8 cr worth assets of Neomax Group in Rs 8,000 cr scam

In a major crackdown, the Directorate of Enforcement (ED) has provisionally attached movable and immovable assets worth Rs 121.80 crore belonging to Neomax Properties Private Limited and its group companies under the Prevention of Money Laundering Act (PMLA), 2002. The attached properties, located across Tamil Nadu, have an estimated market value of around Rs 600 crore.

 

The latest action, carried out on April 9, 2025, follows an earlier provisional attachment of assets worth Rs 117 crore on December 15, 2023. That attachment, with a market value of Rs 207 crore, was later confirmed by the Adjudicating Authority under PMLA.

 

The investigation was initiated following a first information report (FIR) registered by the Economic Offences Wing (EOW), Madurai, against Neomax Properties and its group firms—Garlando Properties, Transco Properties, Tridas Properties, and Glowmax Properties—as well as directors and shareholders Kamalakannan, Balasubramanian, Veerasakthi, Charles, and others.

 

According to the ED, the Neomax Group allegedly lured thousands of investors into real estate plot development projects by promising high returns ranging from 12 per cent to 30 per cent. The group collected large sums, primarily in cash, but failed to deliver either the promised plots or the returns.

 

The funds were allegedly diverted to multiple shell entities and group companies engaged in unrelated businesses, including hospitality, healthcare, pharmaceuticals, retail, information technology, renewable energy, logistics, aerospace services, education, fashion, and e-commerce, the ED said in a statement.

 

Investigators estimate that the Neomax Group owes investors nearly Rs 8,000 crore, including promised returns. Instead of repaying these dues, the group reportedly induced depositors to reinvest their matured amounts.