Enforcement Directorate on Tuesday arrested RK Arora, Chairman of the construction company Supertech from his Delhi office in a money laundering case, LiveHindustan reported. RK Arora was being questioned by the agency for the past three days and the central agency arrested him after the questioning on Tuesday.
After numerous FIRs were filed against RK Arora in Delhi, Haryana, and UP, the ED took action. The draconian Prevention of Money Laundering Act (PMLA) was the basis for the ED’s investigation into the real estate tycoon. According to the FIRs, Supertech and its directors planned to defraud the public by stealing their money while disguising it as one of several real estate schemes.
The company officials failed to fulfill their responsibility to provide the possession of the properties to their respective buyers.
Diversion of money
The Supertech group of companies amassed deposits from home buyers and obtained bank loans for the development of these flats, according to the investigation conducted by ED under the PMLA. The funds were diverted to buy land for the group’s other companies rather than being used for construction as intended.