ED arrests Vatika Group chairman, promoter over alleged plot fraud involving Rs 154 crore proceeds

CHANDIGARH: The Enforcement Directorate (ED) has arrested Vatika Limited Chairman-cum-Managing Director Anil Bhalla and group promoter Gautam Bhalla under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, in connection with a money laundering investigation involving the alleged non-delivery of residential plots in Gurugram.

The two were arrested on September 28 by the ED's Gurugram Zonal Office and produced before the Special Court (PMLA), Gurugram, on September 29. The court remanded them to ED custody till October 3.

According to an ED statement, the agency had registered an Enforcement Case Information Report (ECIR) under the PMLA against Vatika Limited, its promoter-directors Anil Bhalla, Gautam Bhalla and Gaurav Bhalla, and others.

The ECIR was based on multiple FIRs registered by the Economic Offences Wing (EOW) of the Delhi Police under Sections 420, 406 and 120-B of the IPC, alleging fraudulent inducement, non-delivery of residential plots and other related offences.

The ED investigation found that between 2010 and 2012, seven purchaser entities paid approximately Rs 260 crore, representing the entire sale consideration upfront, to Vatika Limited for residential plots in its Vatika India Next projects in Sectors 84 and 85 and Vatika India Next-2 in Sector 88A, Gurugram.

“Further, plot-wise agreements were executed in 2014 and 2015. Thereafter, the project layouts were revised, the plots originally allotted were renumbered/relocated, and the project land continued to be allotted and sold to different purchasers,” the ED said.

According to the agency, not a single plot out of about 1.10 lakh square yards purchased for approximately Rs 90 crore in Vatika India Next-2 has been delivered even after about 14 years, while delivery in Vatika India Next has been only partial.

The ED said substantial portions of the plots, valued at approximately Rs 140.73 crore, therefore remained undelivered.

The agency alleged that Anil Bhalla personally supervised key decisions relating to the transactions under investigation, while Gautam Bhalla was a key promoter who executed important agreements, held directorships in and exercised control over land-owning entities, besides continuing to manage the group's operations.

“The material collected shows that major decisions were taken jointly by these two persons,” the ED said.

The investigation also found that the project land was held through about 22 group companies, which, according to the ED, had no employees or separate business activities and were mainly used to provide corporate guarantees and manage the land bank, including its mortgage to financial institutions.

The ED also examined the bank accounts of Vatika Limited and alleged that money received from purchasers was not used solely for the projects for which it was collected. Instead, the agency said, the funds were transferred to other group companies and promoter-linked entities that were not part of those projects.

In a separate 2024 transaction, Scaler Ventures paid Rs 473.18 crore under an Agreement to Sell and Buy-Back Agreement, the ED said. Only 15 of the 165 plots were bought back, after which 14 of the remaining 150 plots were allegedly sold to third parties for about Rs 13.62 crore without Scaler's knowledge or consent.

The ED said the proceeds of crime quantified so far in the case stood at approximately Rs 154.36 crore.

Earlier, the ED had conducted search operations under Section 17 of the PMLA at seven premises. From the residential premises of one of the accused, the agency recovered and froze a Mercedes-Benz GLC 300, gold and diamond jewellery weighing more than 1.3 kg and valued at about Rs 1.55 crore, and bank accounts and fixed deposits worth about Rs 3.04 crore.