Hyderabad ED action against BHEL housing society, attaches assets worth Rs 16.35 crore

Hyderabad: Sleuths of the Enforcement Directorate, Hyderabad, have attached five immovable properties having a value of Rs 16.35 crore of Vivekanand BHEL Employee Mutually Aided Cooperative House Building Society Ltd. and others.

The attached properties are in the form of open land registered in the name of builder Tribha Ventures Pvt. Ltd, represented by P Govardhan Reddy and in the name of D Srinivasa Rao, Society President.

Misappropriation of funds

ED stepped in after several FIRs were registered by Cyberabad Police against the society for diversion of deposits, misappropriation of funds collected for a housing project at Muthangi Village.

What is the fraud?

The ED investigation revealed that the Society, through its President, Treasurer and other governing body members, collected approximately Rs 18.09 crore from 316 members towards allotment of residential plots and construction of houses.

However, instead of utilising the funds for the stated objective, the office bearers, in conspiracy with the builder Tribha Ventures, diverted and misappropriated the deposits for personal enrichment.

ED investigation further revealed that large sums were transferred from the Society’s bank account to the personal accounts of the builder and other entities, including withdrawals through self-cheques and routing of funds through multiple third-party firms to generate cash.

The diverted funds were utilised for the purchase of land parcels, which were fraudulently registered in the names of the builder and the President instead of registering the same in the name of the Society. PMLA investigation revealed that Proceeds of Crime amounting to Rs. 17.31 crore (approx.) were generated in this case.