ED searches Aryan Hometec in money laundering probe, focusing on alleged diversion of ₹90 crore

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Aryan Hometec money laundering probe

Highlights

The Enforcement Directorate seized valuable documents during searches at three premises linked to Aryan Hometec Private Limited and its directors.
The ED investigation found that the company allegedly diverted a total of ₹90 crore raised for the Aryan Fountain Square and Aryan Golden Arena projects.
The directors are accused of layering and integrating proceeds of crime through family members and affiliated entities; the case is under investigation.

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

Search operation and basis of the investigation

According to the Enforcement Directorate, its Bengaluru Zonal Office searched three premises linked to M/s Aryan Hometec Private Limited and its directors, Bharath Reddy and Rashmi Bharath Reddy. The agency said valuable and incriminating documents were recovered during the operation.

The investigation began on the basis of several FIRs registered by the police following complaints from landowners, homebuyers, and financial institutions. The agency said that in some cases, the police had filed 'C' reports stating that the accused could not be traced, after which their locations were identified and searched.

Real estate projects and the impact of alleged misuse of funds

The investigation has revealed allegations that the company failed to construct the apartments allotted to landowner B.G. Anjinappa under a joint development agreement and also made him a guarantor for loans taken from various financial institutions. According to the agency, the landowner had to repay a substantial portion of the loans himself to save his land, while receiving none of the expected returns from the project.

The ED says the company had agreed with B.G. Anjinappa to divide the units and the associated land in a 63:37 ratio. The investigation covers the "Aryan Fountain Square" and "Aryan Golden Arena" projects, for which funds raised are alleged to have been diverted to other purposes.

According to the agency, a total of ₹90 crore earmarked for the construction of these projects was allegedly siphoned off. The ED alleges that the company and its directors layered and integrated the alleged proceeds of crime by routing them through family members and entities linked to them. The investigation is ongoing.

Our previous report on the Enforcement Directorate's action against Earth Infrastructure Limited, which is linked to the Delhi-NCR real estate sector detailed the provisional attachment of immovable assets worth around ₹140 crore. It covered the investigation into alleged diversion of funds raised from homebuyers and investors, incomplete projects, and the layering and integration of proceeds of crime through various entities. The report also noted the expansion of the investigation through searches, seizures, and further legal action, including arrests and prosecution.

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