New Delhi, Dec 17 The Enforcement Directorate (ED) on Sunday said that it attached immovable properties at various places across Tamil Nadu, having market value of Rs 207 crore in a case of financial fraud committed by Neomax Group of companies, based in Madurai.
The ED registered a case on the basis of the investors lodged complaints before the Economic Offences Wing (EOW), Madurai against Neomax Properties Pvt. Ltd., and its Group companies, which allegedly cheated several investors into depositing lakhs of money in various projects (plot development) by promising high returns and eventually with 12 per cent to 30 per cent interest but they have failed to fulfill their promise.
“Investigation revealed that the Neomax Group of companies had collected funds from the public and running into hundreds of crores and cheated public by diverting these funds to shell entities, group companies and other entities (outside the group),” the ED said.
The central agency said that the probe has also revealed that the Neomax Group of companies has manipulated their accounts to conceal the proceeds of crime.
“The auditor of the group has also confessed that the books of accounts of the Neomax Group are manipulated,” the central agency said.
The ED said that during the investigation, it was unearthed that the Neomax Group of companies have transferred substantial amount of public funds to other entities (outside the group) for purchase of land and these immovable properties were still lying with those other entities.
The ED said that the probe also revealed that these land parcels and projects are proceeds of crime generated by Neomax Group of companies.
“Immovable properties having market value of Rs 207 crore, parked by the Neomax Group of companies in the name of other entities were provisionally attached by the ED,” the agency added.
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