The Enforcement Directorate, Chennai, has provisionally attached immovable properties of VGN Developers valued at Rs 115 crore.

According to a press statement from the ED, it has attached the Chennai-based developer’s property under provisions of the Prevention of Money Laundering Act, 2002.

The 10.46-acre property was purchased by the developer in 2013 from Hindusthan Teleprinters Ltd, a Government of India Undertaking.

A case was registered by CBI, ACB, Chennai for wrongful loss of Rs 115 Crore to the Government of India in buying the vacant land from State Bank of India, Stressed Assets Management Branch, Chennai. It was bought through a private treaty sale under SARFAESI Act to recover the dues of HTL, a public sector undertaking.

The CBI, ACB Chennai, alleged in the FIR that the bank official, company representatives and the buyers conspired to sell the prime land having a guideline value of Rs 387 Crore for a sale price of Rs 272 crore and causing loss of Rs 115 crore to the Government.

The officers of ED Chennai initiated investigations under PMLA and identified that the proceeds of crime in the form of wrongful gain derived by VGN Developers, which has been integrated in the construction  of multi storied residential apartments at Guindy, for sale to general public in the name of “VGN Fairmont”.

On the reasonable belief that “VGN Fairmont” contains the proceeds of crime to the extent of Rs 115 Crores, the said immovable properties were attached provisionally under the provisions of Prevention of Money Laundering Act.

Further investigation is in progress.