The Directorate of Enforcement (ED) arrested Ram Kishor Arora on June 27, 2023 under the relevant sections of the Prevention of Money Laundering Act, 2002. Arora is the promoter and director of Supertech Limited. The arrest was connected to an ongoing investigation into Supertech Group about claims that it misappropriated, syphoned off, and diverted money from investors and clients.
Ram Kishor Arora’s evasiveness and dishonest answers to inquiries during the investigation made him the subject of a custodial interrogation. He was arrested on June 27, 2023 and appeared before the Honourable Designated Special PMLA Court on June 28, 2023.
ED opened an inquiry against Supertech Group as a result of several First Information Reports (FIRs) that prospective homebuyers had filed against the company.
Following an inquiry by the ED, it was discovered that Supertech Group had been used illegally to reroute hundreds of crores of money. In addition, the business breached its contractual obligations to provide the apartments to clients in a timely manner.
According to the investigation conducted by the ED, it was found that the Supertech Group diverted Rs. 440 Crore, which was initially received from customers/homebuyers, for the purported purpose of purchasing land in Gurugram during the period of 2013-14.
Notably, the prices at which the land was acquired were significantly inflated. This diversion occurred despite the fact that Supertech Group had yet to complete their promised projects in Noida.
Following the acquisition of the aforementioned land, a new project was initiated, and additional advances were collected from numerous homebuyers.
Supertech simultaneously acquired loans from non-banking financial institutions (NBFCs) and banks, which later devolved into non-performing assets (NPAs) and were deemed fraudulent by the banks.
In a similar vein, Supertech misappropriated Rs. 154 Crore around the same time to buy land through another shell business. In addition, another shell business received Rs. 40 crore in illicit transfers, which it then used to buy land in Delhi.
Consequently, instead of fulfilling its obligations and completing the projects, the funds were redirected towards shell companies. It is worth noting that these projects remain unfinished as of 2023. Throughout this period, Ram Kishor Arora, the promoter of Supertech, held the primary controlling and decision-making authority within the Supertech Group. He made the deliberate decision to divert the investors’ funds to different shell companies. The ED was given custody of Ram Kishor Arora by the Court until July 10th.
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