The Enforcement Directorate (ED) conducted searches at more than half a dozen locations in Delhi-NCR in connection with a housing society fraud involving its former president and directors, and seized damning documents and digital devices purportedly containing the money trail and evidence of fraudulent diversion of funds.
The raids by ED’s Gurugram unit covered 8 residential and official premises of three individuals named Arun Sharma, Anil Sharma and Mangal Sain Mittal as well as their private business entities across Delhi, Faridabad and Gurugram, who are under probe for allegedly defrauding the members of Shanti Niketan Co-operative Group Housing Society Ltd (SGHS).
The ED sleuths, during the searches, discovered and impounded various digital devices, incriminating documents, property documents, audited Financials and details of diversion of Funds.
The investigation team also seized money and valuables amounting to Rs 6.63 Crore, including unaccounted cash of Rs 55 Lakh, gold worth Rs 1.85 Crore, gold Jewellery worth Rs 1.95 Crore, and silver weighing approx. 100 kg worth Rs 2.28 Crore. Also, several of the accused’s relevant bank accounts were frozen during the proceedings.
The searches followed an ED investigation into alleged financial and housing fraud, in which these individuals and their associates were booked under various sections of the IPC, 1860.
The investigation revealed that Mangal Sain (the then President of the Society), in conspiracy with Anil Sharma and Arun Sharma (Directors of M/s Connoisseur Infrabuild Pvt. Ltd. /CIPL), fraudulently took control of the society, misappropriated members’ funds, inducted forged members, concealed official records, and abandoned the housing project after collecting substantial amounts of money.
The investigations also found that the former top office bearers in the trust violated the stipulated guidelines and illegally sold 34 unauthorised memberships beyond the sanctioned limit of 98 memberships. Anil Sharma and Mangal Sain were found to have done so.
“The accused operated a dual payment mechanism for selling flats and collection through both official bank accounts and in the form of cash,” said an ED statement.
Till now, a total of Rs 90.50 crore has been collected, including amounts received through banking channels as well as in cash. They are also under investigation for the illicit diversion of society funds to business entities controlled by them or their associates.
