The Enforcement Directorate has arrested M3M promoter Basant Bansal, days after they arrested his brother Roop Bansal in a money laundering case. The ED is probing the firm for allegedly diverting, siphoning of and misappropriating funds. The agency has detected money laundering of over Rs 400 crore by the M3M Group and the IREO Group.
Basant Bansal’s arrest comes after the Delhi High Court granted him interim protection from arrest till July 5, along with Pankaj Bansal. The court said that in case of an arrest, he would be granted bail, subject to certain conditions and a personal bond of Rs 10 lakh. The court's orders came on separate anticipatory bail applications by Basant Bansal and Pankaj Bansal in the case being probed by ED.
Meanwhile, Roop Bansal was arrested days prior, following ED searches at seven locations in Delhi and Gurugram belonging to the real estate developers.
Multiple FIRs have been registered against the IREO Group, which prompted the ED to investigate the matter. It was then alleged by the agency that a huge amount of money, running into hundreds of crores, was siphoned off through M3M Group.
Also read: ED arrests M3M India promoter Roop Bansal in PMLA case
The ED stated that M3M Group received Rs 400 crore from IREO Group through several shell companies in multiple layers that the latter showed as payments through development rights. The land belonged to M3M Group for a market value to Rs 4 crore. It sold the rights of the lands to five shell companies, that it said were unrelated companies, for a payment of Rs 10 crore. Further investigation into the matter revealed that the shell companies were operated by M3M Group, the agency said.
The shell companies then sold the development rights of the same land to IREO Group for about Rs 400 crore, which was immediately transferred. After receiving the amount, the shell companies transferred the amount to M3M Group.
“All the shell companies were owned and operated by M3M Group under the directions of its promoters Basant Bansal and Roop Kumar Bansal and his family members,” the agency stated.
The agency added that the companies siphoned off Rs 400 crore belonging to investors and customers, while the proceeds of the crime remained with the M3M Group and was used for other investments and to pay off liabilities.
IREO never developed the land and started to write off the investments every year, ED stated.
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