ED Launches Raids in Major Real Estate Money Laundering Probe

The Enforcement Directorate (ED) initiated a series of searches across eight locations in Uttar Pradesh and Delhi as part of a significant money laundering investigation concerning Rohtas Projects, a Lucknow-based real estate company. These searches come under the ambit of the Prevention of Money Laundering Act (PMLA).

This investigation is rooted in an Enforcement Case Information Report (ECIR) from 2021, predicated on 48 initial First Information Reports (FIRs) submitted by homebuyers and commercial space buyers alleging fraud and breach of delivery promises. Over time, the FIR count has risen to 87. A forensic audit by the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has determined the crime proceeds to be Rs 248 crore.

The company's promoter brothers, Piyush, Paresh, and Deepak Rastogi, have allegedly evaded authorities for four years. Insufficient prior evidence hindered property confiscation efforts. Current operations aim to secure pivotal documents, establish crime proceeds, and enable asset attachments.

(With inputs from agencies.)