Delhi court sends Supertech's owner R K Arora to ED custody till July 10 in money-laundering case

A Delhi Court on Wednesday sent Supertech chairman and owner R K Arora to Enforcement Directorate (ED) custody till July 10 in money laundering case.

ED on Tuesday had arrested Arora under the criminal sections of the Prevention of Money Laundering Act (PMLA), following a third round of his questioning at the federal agency's office, PTI had reported citing official sources.


The money-laundering case against the Supertech group, its directors and promoters originates from a bunch of FIRs registered by the police departments in Delhi, Haryana and Uttar Pradesh.

In April, the ED had attached assets worth more than Rs 40 crore to the real estate group and its directors.

The directorate had also said the company and its directors were involved in a "criminal conspiracy" to cheat people by collecting funds from prospective buyers as an advance against booked flats in their real estate projects and failed to adhere to the agreed obligation of providing the possession of the flats on time and thus, according to the FIRs, the firm "defrauded" the general public.

The agency's investigation disclosed that the funds were collected by Supertech Limited and group companies from homebuyers. The ED said, the company also took project-specific term loans from banks and financial institutions for the purpose of construction of projects or flats.

However, these funds were "misappropriated and diverted" for buying land in the name of other group companies that was again pledged as collateral to borrow funds from banks and financial institutions, it added.

The agency said, the Supertech group also "defaulted" on its payments to the banks and financial institutions and currently, around Rs 1,500 crore of such loans have become non-performing asset (NPA).