ED intensifies searches in Shanti Niketan Housing Society alleged fraud case

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Shanti Niketan Housing raid

Highlights

ED's raids on eight premises linked to Mangal Sen Mittal, Anil Sharma, and their entities revealed recovery of Rs 90.50 crore related to Shanti Niketan Housing Society.
During the seizure, assets worth Rs 6.63 crore were recovered, including Rs 55 lakh in cash, gold biscuits worth Rs 1.85 crore, jewelry worth Rs 1.95 crore, and silver worth Rs 2.28 crore.
ED froze several bank accounts linked to the accused; the case highlights regulatory and oversight risks in the Delhi-NCR housing sector.

This article was translated from the original. Read the original version by our correspondent here.

Search Operations and Investigation Findings

According to the Enforcement Directorate, the agency conducted search operations at eight residential and commercial premises linked to Mangal Sen Mittal, Anil Sharma, their associates, and business entities under PMLA, 2002. The investigation stems from an FIR registered at Sushant Lok, Gurugram police station under various sections of IPC, 1860, naming Anil Sharma, Arun Sharma, Mangal Sen Mittal, and others for alleged fraud against members of Shanti Niketan Co-operative Group Housing Society Ltd.

The agency states that former society president Mangal Sen, in alleged conspiracy with Anil Sharma and Arun Sharma, directors of M/s Connoisseur Infrabuild Pvt. Ltd., took control of the society, misused members' funds, added fake members, concealed official records, and abandoned the housing project after collecting large sums. The investigation found that 34 illegal memberships were sold against the approved limit of 98. For flat sales, a dual payment system was used, collecting payments through both bank accounts and cash at rates of Rs 3,500 to Rs 4,000 per square foot.

So far, the investigation has uncovered total collections of about Rs 90.50 crore, including amounts received via banking channels and in cash. The agency claims that society funds were diverted to business entities controlled by the accused, and bank account scrutiny revealed layered and circular fund movements, including Rs 12 crore in cash deposits into accounts of M/s Connoisseur Infrabuild Pvt. Ltd. and Anil Sharma.

Seizures, Account Freezes, and Regional Impact

During the searches, digital devices, incriminating documents, property papers, audited financial records, Tally data, and information related to fund diversion were recovered and seized. According to the ED, the total value of seized assets is around Rs 6.63 crore, including unaccounted cash of Rs 55 lakh, gold biscuits worth Rs 1.85 crore, gold jewelry worth Rs 1.95 crore, and about 100 kg of silver valued at Rs 2.28 crore.

Several bank accounts linked to the accused were also frozen during the operation, which may help investigative agencies trace the flow of funds and identify potential beneficiaries. This case highlights regulatory oversight risks in membership allocation, project fund usage, and cash transactions in the housing and cooperative sector of Delhi-NCR.

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