Supertech Chairman R K Arora was sent to judicial custody till July 24 by a Delhi court on Monday. Arora was arrested by the ED under the Prevention of Money Laundering Act (PMLA) following three rounds of questioning. The ED is probing 26 FIRs filed by EOWs of Delhi, Haryana, and UP police.
Earlier, the ED in its application said that Arora’s interrogation is necessary to uncover the larger conspiracy involved in the case. The ED is probing 26 FIRs filed by the Economic Offences Wing (EOW) of the Delhi, Haryana, and Uttar Pradesh police against Supertech Ltd. and its group companies. The charges include criminal conspiracy, cheating, criminal breach of trust, and forgery. The allegations state that the company defrauded around 670 home buyers of Rs 164 crore.
The agency said that Supertech and its directors conspired to cheat people by collecting funds from prospective homebuyers as advance payments for flats in their real estate projects. However, the company failed to fulfil its obligation of delivering the flats on time, resulting in fraudulent activities and causing financial harm to the public.
“Considering the facts and circumstances of the case and to unearth the complete conspiracy, I am of the considered opinion that the custody remand of the accused Ram Kishor Arora is necessary. Accused Ram Kishor Arora is accordingly remanded to ED custody till July 10, 2023,” the court said in its remand order, as per PTI. The order further said that in accordance with the law laid down by the Supreme Court, Arora should be interrogated at a place that has CCTV coverage, and footage of the interrogation be preserved.
The ED claimed its investigation revealed the funds were collected by Supertech Limited and other group firms from homebuyers. The company also took project-specific term loans from banks and financial institutions for the purpose of construction of housing projects.