Companies

ED attaches assets worth ₹2,510.82 cr in SRS Group fraud case

Our Bureau New Delhi | Updated on January 09, 2020 Published on January 09, 2020

The Enforcement Directorate (ED) has provisionally attached assets comprising land, real estate projects, commercial projects, residential houses, a school, cinema hall, balances in bank accounts and fixed deposits totalling ₹2,510.82 crore of the SRS Group, its promoters, their family members and associate companies, in a cheating and fraud case, according to an ED press statement.

During investigations into the Prevention of Money Laundering Act (PMLA), it was revealed that the accused, Anil Jindal, Jitender Kumar Garg and Praveen Kumar Kapoor, were the key promoters of SRS Group. “They, along with other accomplices, hatched a criminal conspiracy and lured investments from several individual and institutions on fake promises of high returns, in the guise of investments in real estate units such as shops, plots, flats, apartments and so on,” the press statement said.

ED investigations revealed that these funds and investments were later siphoned off into group companies through various shell companies of the SRS Group having dummy directors, who were mainly SRS Group employees. “Further, they presented fabricated balance sheets in order to enhance their turnover and balance sheets. They kept investors in the dark, by not giving investors specific investment plans,” the statement said.

To sustain their illegal investment schemes, they further availed of loans, which were used for repayment and to develop their other projects. ED officials said these investment schemes lacked a prudent financial structure, and proved that they had no intention of repaying the amount invested.

Published on January 09, 2020
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