homebusiness NewsReligare Finvest money laundering probe: ED attaches assets worth ₹124 crore

Religare Finvest money laundering probe: ED attaches assets worth ₹124 crore

The properties attached are in the form of land, and farmhouse(s) located in posh areas of Gurugram and Delhi. M/s Kenwood Mercantile Pvt. Ltd., M/s Goodfaith Builders Pvt. Ltd are entities belonging to the M3M group, a Gurugram-based realtor.

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By Dhananjay Khatri  Mar 27, 2024 8:55:05 PM IST (Updated)

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Religare Finvest money laundering probe: ED attaches assets worth ₹124 crore
The Enforcement Directorate has provisionally attached immovable properties worth 124.57 crore belonging to RS Infrastructure Pvt. Ltd., M/s Kenwood Mercantile Pvt. Ltd., M/s Goodfaith Builders Pvt. Ltd. and other suspects involved in the offence of money laundering in the matter of M/s Religare Finvest Limited and Ors.

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The properties attached are in the form of land, and farmhouse(s) located in posh areas of Gurugram and Delhi. M/s Kenwood Mercantile Pvt. Ltd., M/s Goodfaith Builders Pvt. Ltd are entities belonging to the M3M group, a Gurugram-based realtor. Land measuring 430 acres in Gurugram/ Faridabad belonging to the entities of the M3M group has been provisionally attached as the Proceeds of Crime (PoC) flowing through a maze of companies to the M3M group.
A partnership firm by the name of M/s M3M India Holdings having partners namely Roop Kumar Bansal, Basant Bansal, Abha Bansal and Pankaj Bansal had received PoC in excess of 500 crore by showing the sale of shares of land owing company M/s RS Infrastructure Pvt Ltd at a grossly inflated value of 726 crore (approximately) to an entity M/s Lowe Realty Pvt. Ltd. (currently known as Lowe Infra and Wellness Pvt. Ltd.).
ED investigation revealed that value of the land owned by RS Infrastructure Pvt. Ltd. was deliberately inflated by M/s M3M India Holdings (former Shareholder of RS Infrastructure Pvt. Ltd.) to drain out hefty funds from Lowe Realty Pvt. Ltd. which borrowed the same amount from Religare group. During the investigation by ED in Religare Finvest Limited and Ors., 1 Prosecution Complaint and 2 Supplementary Prosecution Complaints have been filed before the Ld. Special Court. ED has also issued 3 Provisional Attachment Orders including the latest one to attach the proceeds of crime originated from the Corporate Loan Book fraud of M/s Religare Finvest Limited.
ED had earlier attached properties amounting to 54 crore & $1,50,00,000/- belonging to M/s RS Infrastructure Pvt. Ltd. and Malvinder Mohan Singh, respectively, in 2020 & 2021. The nature of the properties attached in India includes land and farmhouse(s), whereas, properties attached in foreign jurisdiction include an insurance policy of AXA China Insurance Company (Bermuda) Ltd. belonging to Malvinder Mohan Singh, erstwhile promoter of Religare group.
Regarding the ED attachment, Religare Finvest stated that the recent action of ED - in attaching assets and seeking information from foreign jurisdictions in furtherance of the investigation – bolsters the resolve of the current management of Religare in recovering the siphoned-off funds. Before 2018, the erstwhile management had siphoned off funds by sanctioning and disbursing loans under the Corporate Loan Book (CLB) of RFL.
"The ED is conducting the investigation, based on the complaint by the current management of RFL against the erstwhile promoters of Religare (Shivinder Mohan Singh and Malvinder Mohan Singh) and their associated persons/entities," Religare Finvest said.
RFL, under its current management, has already repaid more than 9,000 crore to the public banking system of the country and is committed to recovering its lost assets on account of the actions of the erstwhile promoters and their associates.
Further Investigation is under progress.

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