ED searches Aryan Hometec premises over home-buyer and land-owner fraud

It matters to citizens as it details allegations of large-scale financial fraud and money laundering involving home buyers, land owners, and financial institutions.

Who it concerns: M/s Aryan Hometec Private Limited, its directors Bharath Reddy and Rashmi Bharath Reddy, the land owner B.G. Anjinappa, home buyers/investors, and financial institutions.

What the ED says it did

• ED conducted search operations at three premises connected to the company and its directors.
• Incriminating and valuable documents were seized during the searches.
• The investigation was initiated based on FIRs filed by police authorities following complaints from the land owner, home buyers, and financial institutions.
• Police 'C' Reports indicated the accused persons were not traceable prior to the searches.
• The company allegedly cheated the land owner by failing to construct allocated apartments under a Joint Development Agreement (JDA) and by making him a guarantor for loans.
• The land owner reportedly repaid a major part of the loans to retain the land without receiving returns from the company.
• The JDA with land owner B.G. Anjinappa stipulated a 63% (company) to 37% (land owner) share of units/apartments for projects 'Aryan Fountain Square' and 'Aryan Golden Arena'.
• The directors allegedly siphoned off INR 90 Crores collected for project construction for other purposes.
• The company and directors are alleged to have committed money laundering by diverting proceeds of crime to family members and family-owned entities.

Also in the document

• The ED stated that relentless efforts were made to gather the whereabouts of the directors before conducting the searches.
• The investigation is currently under progress.