Source : INDIA TODAY NEWS
The Directorate of Enforcement (ED), Mumbai Zonal Office-II, has provisionally attached 88.47 acres of land parcels in Alibaug in a money laundering case involving Jai Corp Limited and others. The agency said the properties are presently valued at around Rs 336 crore.
The action has been taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
According to the ED, its investigation was initiated on the basis of a First Information Report (FIR) registered by the CBI’s Economic Offences Branch in Mumbai.
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The FIR followed a Bombay High Court order dated January 31, 2025, and relates to alleged financial irregularities, diversion of funds and money laundering involving Jai Corp Limited, Urban Infrastructure Venture Capital Limited, Urban Infrastructure Trustees Ltd and others.
The ED said Jai Corp had launched an Urban Infrastructure Venture Capital Fund (UIVCF) in 2006-07. The fund collected around Rs 2,434 crore from several investors, including public sector banks and financial institutions.
The money was subsequently invested in various special purpose vehicles (SPVs) for real estate projects across India.
ED ALLEGES UNDERVALUATION OF FUND ASSETS
The agency said the term of the fund was extended beyond the permissible period without approval from the Securities and Exchange Board of India (SEBI). The fund was subsequently wound up by SEBI, which directed that investors be provided an exit after the assets held through the SPVs were valued by an independent valuer.
According to the ED, its investigation found that the value of the fund’s share in the SPVs was significantly reduced and recorded at Rs 269.20 crore. The agency said this resulted in investors receiving an exit at a substantially lower value.
The ED further said residual units of the fund were acquired at a lower value by five entities linked to the promoters of Jai Corp Limited.
ALIBAUG LAND LINKED TO SPV
One of the SPVs identified during the investigation was Neelkanth Township and Constructions Private Limited, in which UIVCF had invested Rs 51 crore. The funds were used to acquire land parcels in Alibaug.
The ED said the fair market value of the fund’s stake in the SPV was suppressed and that the stake was subsequently acquired at an undervalued price by the five entities linked to the promoters.
The agency has estimated the resulting proceeds of crime at Rs 230 crore. It said the provisional attachment covers immovable properties of the SPV valued at Rs 230 crore as of October 31, 2022, while their present market value is around Rs 336 crore.
EARLIER SEARCHES LED TO CASH, ASSET FREEZES
The ED said search operations conducted earlier in the case resulted in the seizure of approximately Rs 1.86 crore in cash. The agency also froze balances in demat accounts and mutual funds valued at around Rs 99.47 crore.
The investigation into the case is continuing, the ED said.
– Ends
SOURCE :- TIMES OF INDIA
