Tag: Ajay Chandra

Enforcement Directorate files fresh chargesheet against Unitech group, promoters in money laundering case

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Enforcement Directorate has filed a fresh chargesheet before a court in connection with its money laundering probe against realty group Unitech, its promoter brothers Sanjay Chandra and Ajay Chandra and others, the federal agency said on Friday. The chargesheet was filed on Thursday before the Rouse Avenue court and the court has taken cognisance of the prosecution compliant field under various sections of the Prevention of Money Laundering Act (PMLA), it said.

Sanjay Chandra, Ajay Chandra, Ramesh Chandra (their father and founder of the Unitech group), Preeti Chandra (wife of Sanjay Chandra), Rajesh Malik (promoter of accused company Carnoustie group) and 66 domestic and overseas companies have been arrayed as accused in the chargesheet, the Enforcement Directorate (ED) said. All five are in judicial custody at present.

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This is the second chargesheet by the agency against the accused. The first was filed on December 2 last year. The ED had filed a money laundering case against the group, its promoters and linked companies on June 6, 2018, on the directions of the Supreme Court and also after taking cognisance of two Delhi Police FIRs filed by the economic offences wing (EOW) and the Saket police station.

The agency has conducted as many as 43 raids in this case, issued 11 attachment orders, which includes 297 domestic and overseas assets worth a total of Rs 763 crore, till now. Properties of other accused companies like Carnoustie Group, Shivalik Group, Trikar Group as well as the personal and shell (dummy) companies linked to the Chandra’s have been attached, it said.

The ED said the total “proceeds of crime” detected in this case stand at Rs 6,352 crore and it has also filed five status report before the apex court updating it about the investigation being conducted under the criminal sections of the PMLA.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Enforcement Directorate arrests ex-Unitech promoters Sanjay & Ajay Chandra

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Enforcement Directorate (ED) has arrested jailed ex-promoter brothers of the Unitech realty group– Sanjay Chandra and Ajay Chandra– in a money laundering case being investigated against them, officials said on Tuesday. They said the brothers were taken into custody on Monday and have been brought to Delhi from Mumbai where they were lodged in separate jails in an alleged cheating case filed by the Delhi Police.

The action came after the Supreme Court earlier this month allowed the anti-money laundering agency’s plea for a fresh custodial interrogation of the duo saying it has obtained new evidence against them and it needs to confront them with those documents. The ED is expected to produce them before a special Prevention of Money Laundering Act (PMLA) court here seeking their custody for interrogation, they said.

The agency had earlier informed the Supreme Court that the brothers were conducting business from the Tihar Jail premises in connivance with the prison staff when they were lodged there. It had made a startling revelation that its officials unearthed a “secret underground office” in the jail which was being operated by erstwhile Unitech founder Ramesh Chandra and visited by his sons Sanjay and Ajay when on parole or bail.

The apex court, following this disclosure by the ED, asked authorities to shift the brothers in two separate prisons in Mumbai, Arthur Road Jail and Taloja Jail. The ED, which has been investigating money laundering charges against the Chandra’s and their realty firm Unitech Ltd, said in its report that both Sanjay and Ajay have rendered the entire judicial custody meaningless as they have been freely communicating, instructing their officials and disposing of properties from inside the Tihar Jail in connivance with the prison staff.

The brothers are in jail since August 2017 and are accused of allegedly siphoning home buyers’ money. The ED filed a criminal case under various sections of the PMLA early this year against the Unitech group and its promoters over allegations that the Chandra brothers illegally diverted over Rs 2,000 crore of depositors funds to Cyprus and the Cayman Islands. In October, the ED had arrested Unitech founder Ramesh Chandra, Sanjay Chandra’s wife Preeti Chandra and Rajesh Malik of the Carnoustie group.

It has attached properties worth more than Rs 690 crore in this case till now.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Supreme Court directs full-fledged probe into collusion of Tihar jail officials with ex-Unitech promoters

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court on Wednesday directed a full-fledged probe into the collusion of Tihar Jail officials with Unitech’s imprisoned ex-promoters Sanjay and Ajay Chandra, based on Delhi Police Commissioner Rakesh Asthana’s report filed in a sealed cover. A bench of Justices D Y Chandrachud and M R Shah directed registration of criminal cases against Tihar Jail officials and other unknown persons under relevant provisions of Prevention of Corruption Act and Indian Penal Code against those involved in collusion on the basis of the report.

It also directed suspension of Tihar Jail officials, pending proceedings against whom cases will be lodged as per the report, following ED’s disclosure that the Chandra brothers were conducting business from prison. The top court further directed the Home Ministry to comply with Asthana’s suggestions in the report on enhancing prison management and allowed a copy to be shared with the ministry for necessary compliance of directions.

Besides, the court also took on record reports filed in sealed cover by Enforcement Directorate (ED), Serious Fraud Investigation Office (SFIO) and Delhi Police, and listed the matter for further hearing on October 21. On August 26, the apex court had directed that the Chandra brothers be shifted from Tihar Jail in the national capital to Mumbai’s Arthur Road Jail and Taloja prison in Maharashtra after the ED had said that they were conducting business from the premises in connivance with the staff.

The top court, which then perused two status reports of the ED, had said Tihar Jail Superintendent and other staff are absolutely shameless for conniving with the Chandra brothers to flout the court orders and undermine its jurisdiction. Pursuant to the direction of the top court, the Chandra brothers were shifted to jails in Mumbai. The two ED reports have raised some serious and disturbing issues for consideration and will be dealt with accordingly, the top court had said.

It had directed the Delhi Police Commissioner to personally hold inquiry forthwith about the conduct of the Tihar Jail staff with regard to the Chandra’s and submit the report to the court within four weeks. The ED had made a startling revelation that it had unearthed a secret underground office here which was being operated by erstwhile Unitech founder Ramesh Chandra and visited by his sons Sanjay and Ajay when on parole or bail.

The ED, which has been investigating money laundering charges against the Chandra’s and realty firm Unitech Ltd, said in its report that both Sanjay and Ajay have rendered the entire judicial custody meaningless as they have been freely communicating, instructing their officials and disposing of properties from inside the jail in connivance with the prison staff there. Besides ED and SFIO, Economic Offence Wing of Delhi Police is also conducting investigation into the affairs of the Unitech Group and business transactions of erstwhile promoters of the real estate company.

Both Sanjay and Ajay who are in jail since August 2017 are accused of allegedly siphoning home buyers’ money. The top court in its October 2017 order had asked them to deposit Rs 750 crore with the apex court registry by December 31, 2017. The brothers have claimed that they complied with the court’s conditions and they have deposited an amount in excess of Rs 750 crore and, therefore, they are granted bail.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

MCA detects scam worth Rs 700 crore in Unitech, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The corporate affairs ministry (MCA) detected a scam of around Rs 700 crore in Unitech, reported Business Standard. Government officials told the paper that the ministry has discovered that the troubled real estate firm siphoned off huge amounts of money to various shell companies.

The ministry is examining the findings carefully and will take future action based on it, said the report. Earlier, the Supreme Court approved the government’s proposal to take over the management of embattled realty firm and appointment of a new board of directors.

The move is expected to bring relief to the realty firm whose promoters Sanjay Chandra and his brother Ajay Chandra are currently lodged in Tihar jail for allegedly siphoning off homebuyers’ money.

The apex court said the existing board will be superseded and a new board will be appointed.  The new board, which will consist of seven nominee directors nominated by the government, will be headed by former road transport secretary YS Malik.

The court gave two months time to Unitech new board to prepare a resolution framework. The apex court also said it will appoint a retired judge to monitor the preparation of resolution framework of Unitech board.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Supreme Court allows government to take over Unitech management

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court on Monday approved the central government’s proposal to take over the management of embattled realty firm Unitech and appointment of new board of directors.

The apex court said the existing board will be superseded and a new board will be appointed.  The new board, which will consist of seven nominee directors nominated by the government, will be headed by former road transport secretary YS Malik.

The court gave two months time to Unitech new board to prepare resolution framework.

The apex court said it will appoint a retired judge to monitor preparation of resolution framework of Unitech board.

The court differed on allowing any member from the previous management to continue on the new board so that no fresh proceedings can be launched against Unitech. This would allow the board to arrive at some form of resolution plan, it said.

The government, however, told the court that it will not infuse any capital.

The Supreme Court in its last hearing in December 2019 had asked the government to look at the possibility if it can take control of Unitech to address the case of home buyers.

The matter was earlier listed for January 17, but due to personal engagements of Unitech owners and promoters, the date was moved to January 20.

Sanjay Chandra and his brother Ajay Chandra, promoters of Unitech, are currently lodged in Tihar jail for allegedly siphoning off homebuyers’ money.

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Relief for 12,000 home buyers as Centre agrees in SC to take over Unitech management

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a major development, the Centre has told the Supreme Court that it is agreeable to revisit its 2017 proposal to take over the management control of embattled realty firm Unitech Ltd and complete its stalled projects to bring relief to around 12,000 hassled home buyers.

The Centre, in its six-page note submitted to a bench headed by Justice D Y Chandrachud, said it is prepared to revisit its proposal of December 2017, to remove the existing management of Unitech Ltd and appoint ten nominee directors of the government.

The Centre, however, said it would not infuse any funds for completion of pending projects of the company. It said the court while ensuring a period of calm should direct a moratorium for 12 months.

For the proposed board, the government also suggested the name of retired Haryana cadre IAS officer Yudvir Singh Malik, as chairman and managing director of the board and names of members including A K Mittal, ex-CMD of National Buildings Construction Corporation (NBCC), Renu Sud Karnad, Chairman of HDFC Credila Finance Service Pvt Ltd, Jitu Virwani, CMD of Embassy Group, Niranjan Hiranandani, MD of Mumbai-based Hiranandani Group.

It said the court may appoint a retired judge of the Supreme Court for supervising the resolution framework finalised by the proposed board of directors.

“That this court may allow the proposed board of directors to appoint key managerial persons, professionals (legal, insolvency, financial advisors, real estate professionals, etc) for assisting the government-appointed board and payment of requisite professional fees including the legal fees, thereof from the company accounts,” the Centre’s note said.

It also sought directions to the promoters, the present management of the company, forensic auditors, asset reconstruction companies, banks and financial institutions and state governments to extend cooperation to the proposed board of directors.

“That this court may issue directions to restrain the promoters from alienating, mortgaging, creating charge or lien or interest in the movable and immovable properties owned by them,” the government said, adding, services of the committee headed by Justice S N Dhingra, appointed to sell the company’s assets, be put on rest.

The government also sought immunity for the proposed directors in respect of the numerous litigations pending across the country, involving the company, management and its promoters.

It also sought permission for the proposed board of directors to raise funds due from the home buyers, sell the unsold inventory, monetising the unencumbered assets for completion of the stalled projects.

“That this court recognizes and directs that without any prejudice to any order, the government has the right to refer the company to liquidation or Insolvency and Bankruptcy Code (IBC), like resolution outside the framework of IBC, in case the assigned takeover is not viable in the absence of requisite resources,” the government said.

On December 18, last year, the top court had asked the Centre if it was agreeable to revisit its 2017 proposal as there is an urgent need for the projects of Unitech Ltd. to be taken up by a specialised agency, so as to ensure completion in a time-bound schedule in the interest of the home buyers.

The top court had said, “Since the Union of India withdrew the application which it had submitted before the NCLT only for the reason that this Court was seized of the present proceedings, we are of the view that the Union of India should revisit the original proposal in the interests of home buyers and consider appointing independent Directors for the takeover of the management of Unitech Limited”.

It had said that these deliberations may be conducted at the highest level and Attorney General K K Venugopal should apprise the court by January 15, about the modalities which have been worked out.

In 2017, the Centre had moved the National Company Law Tribunal (NCLT) seeking suspension of the current directors and order of restraint on the alienation of assets by Unitech Ltd.

The NCLT in its order December 8, 2017, issued interim directions for suspension of directors of Unitech Ltd and restrained them from alienating, mortgaging, creating charge or lien or interest in the properties owned by them personally or that of the company till the conclusion of the investigation.

However, the top court on December 13, 2017, stayed the NCLT’s December 8, 2017 order and later the Centre agreed to withdraw its application from the tribunal.

In 2018, the apex court had directed a forensic audit of Unitech Ltd and its sister concerns and subsidiaries by Samir Paranjpe, Partner, Forensic and Investigation Services in M/s Grant Thornton India.

The forensic auditors have also submitted their report which said that Unitech Ltd received around Rs 14,270 crore from 29,800 home buyers mostly between 2006-2014 and around Rs 1,805 crore from six financial institutions for the construction of 74 projects.

The audit revealed that around Rs 5,063 crore of home buyers money and around Rs 763 crores of fund received from financial institutions were not utilized by the company and high-value investments were made off-shore tax-haven countries between 2007-2010.

The top court-ordered investigation into the omission and commission of promoters of Unitech Ltd under the Prevention of Money Laundering Act (PMLA).

Unitech promoters Sanjay Chandra and his brother Ajay Chandra are currently lodged in Tihar jail for allegedly siphoning off homebuyers’ money.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow