ED arrests WTC Group promoter Ashish Bhalla in real estate fraud case

The Enforcement Directorate (ED) has arrested Ashish Bhalla, promoter of WTC Group of Companies, on March 6 in a real estate fraud and cheating case involving more than Rs 1,000 crore.

 

Bhalla was taken into custody under the Prevention of Money Laundering Act (PMLA) on Thursday, and a special court in Gurugram sent him to ED custody for six days, the enforcement and economic intelligence agency said in a statement.

 

The ED had conducted search operations on January 27 against Bhalla and Bhutani Group promoter Ashish Bhutani in connection with the same case.

 

The agency alleged that after promising assured returns in exchange for investment in plots or commercial spaces, WTC "diverted" depositors’ funds and "siphoned off" the money to several shell companies to acquire land at various locations.

 

 

The ED said it had initiated an investigation based on more than 30 first information reports (FIRs) registered by Faridabad Police, Delhi Economic Offences Wing (EOW), and other law enforcement agencies. The allegations involve multiple scheduled offences, including cheating, fraud, and criminal conspiracy under various sections of the Indian Penal Code (IPC), 1860. The complaints accuse WTC of failing to deliver real estate projects despite collecting hundreds of crores from investors in Faridabad and other locations, allegedly duping hundreds of investors through a "well-planned conspiracy".

 

The ED’s investigation also revealed that the WTC Group was undertaking five major projects under the WTC brand and started collecting funds by promising assured returns in exchange for investment in plots or commercial spaces.

 

“The funds were diverted and siphoned off to several shell companies to acquire land parcels at various locations. Investigations have also revealed that hundreds of crores were also diverted abroad to suspicious entities in Singapore, whose beneficial ownership is with family members of Ashish Bhalla,” the ED said in the statement.

 

Further investigation revealed that the WTC Group had collected more than Rs 3,000 crore from investors across several states, including Haryana, Uttar Pradesh, Chandigarh, Ahmedabad, and Punjab, but the majority of the funds were never utilised for development.

 

“Investigations have revealed that he (Bhalla) is a key beneficiary and mastermind of the fraudulent activities of the group and has made unlawful gains through the scheme,” the statement added.

 

The investigative agency further noted that the investigation is ongoing.

 

Last week, real estate firm Bhutani Infra said it is cooperating with ED in its investigation into alleged money laundering and fraud involving property buyers.