New Delhi/Gurugram, March 6 With the Directorate of Enforcement (ED) raiding the real estate companies WTC Group and Bhutani Group, large-scale financial irregularities have been found which indicates a clear breach of trust and fraud against hundreds of homebuyers by the accused companies and people associated with these firms.
During search operations, documents related to funds collection of more than Rs 3,500 crore from various investors were found against 15 projects in Delhi/NCR region.
Additionally, incriminating documents related to WTC Group and Bhutani Group were found and seized wherein assets worth thousands of crores of market value has been transferred to Bhutani Group at nominal value, thus transferring the Proceeds of Crime (POC) at nominal price.
Documents related to cash transactions of the Group were also found.
Thousands of home buyers and investors are now calling for urgent intervention in what is being described as one of India's largest real estate frauds.
The scam has left over 20,000 buyers stranded with incomplete development and financial losses amounting to thousands of crores.
On February 27, the ED’s Gurugram Zonal Office conducted search operations at 12 locations in Delhi, Faridabad, and the NCR region against WTC Group and promoter Ashish Bhalla and Bhutani Group and its promoter Ashish Bhutani, under the provisions of Prevention of Money Laundering Act (PMLA), 2002.
The agency initiated the investigation on the basis of dozens of FIRs registered by the economic offences wing (EOW) of the Delhi Police, PS BPTP Faridabad and PS Faridabad Central on the basis of complaints from hundreds of homebuyers and investors against WTC Group and its promoters and others for cheating, criminal breach of trust and fraud against hundreds of homebuyers by the accused companies/persons.
The FIRs alleged that WTC Faridabad Infrastructure Private Limited and promoters had lured the general public and plot buyers to invest in their project at Sector 111-114, Faridabad for allotment of residential plots to the plots buyers.
According to the ED, the promoters/directors hatched a criminal conspiracy and siphoned off the hard-earned money of the plot buyers by not completing the project within the stipulated time and non-delivery of the plots to the plot buyers for more than 10 years.
It was also alleged in FIRs that Bhutani Infra Group has acquired the WTC group and has re-launched the project at Sector 111-114 Faridabad keeping the plot buyers in disarray and committing fraud with investors & luring them to surrender units.
Bhutani Group had signed an agreement in July 2024 to buy a majority stake in WTC.
Out of the 15 major projects being undertaken by the group, very few deliveries have been given indicating a well-orchestrated Ponzi scheme and the creation of assets in the name of other entities & siphoning the funds abroad.
"Further, it was also unearthed during search action that more than Rs 200 crore has been siphoned to Singapore and the US, indicating investments overseas for acquiring of overseas assets," according to the ED.
Additionally, "assets to the tune of Rs 1,000s of crores has been identified in the name of WTC Group”.
Further, various fixed deposits in the name of WTC Group of companies have been frozen and seized along with jewellery and bullion amounting to Rs 1.5 crore.
In response, Bhutani Infra issued a statement, categorically denying any involvement in land or fund transfers from the controversial real estate group.
"No land or funds were transferred to Bhutani Infra during its brief association with WTC, including any share transfers in land-holding companies to Bhutani Infra or its directors," the company said, adding that it has severed all ties with the WTC Group.
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