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Shell firm boss held for using buyers' money to purchase land in Goa

Press Trust of India  |  Noida (UP) 

The of a shell firm has been arrested here for allegedly illegally diverting money of property buyers from the main company and using it to purchase land in Goa, police said Tuesday.

The 20-something was arrested on Monday and has been booked under Indian Penal Code sections 420 (fraud), 406 (criminal breach of trust), 467 (forgery of valuable security, will, etc), 506 (criminal intimidation), and related offences, they said.

Aditya's father, Awadhesh Goyal, a of Earth Infrastructure, is already behind bars in the two-year-old case in which an FIR was registered at Sector 20 police station in Noida on a complaint by a Meerut-based buyer.

Police said the fund was allegedly diverted in connivance with two individuals -- and -- who together floated around 10 firms to illegally divert the money of buyers from the and

They further transferred it into 100s of other "front companies" headed by wives and other relatives of the directors of the two main firms, said Sector 20

Garg, the of Fincap Private Limited, was arrested by the crime branch in November last year. His associate Vijay is absconding and searches are underway to nab him, Chauhan said.

"The money of buyers was used by the directors of these front companies to buy properties like land, bungalows, farm houses and shops," the SHO said.

"Goyal, son of Awadhesh Goyal, was the and accused of using this ill-gotten money from to buy a 1,800 sq yard plot in Goa, among others," Chauhan said.

The case is under investigation by the Crime Branch and the the police said more arrests are likely soon.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 12 2019. 22:20 IST
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