ED Arrests Vatika Group Top Officials in Gurugram Money Laundering Case

The Enforcement Directorate has arrested Vatika Limited chairman-cum-managing director Anil Bhalla and promoter Gautam Bhalla in connection with a money-laundering case involving alleged fraudulent inducement and the non-delivery of residential plots in Gurugram.

Case Details

The investigation stems from multiple First Information Reports filed by the Economic Offences Wing of the Delhi police. Between 2010 and 2012, seven buyer entities paid ₹260 crore upfront to Vatika Limited for plots in the Vatika India Next projects in Sectors 84/85 and Vatika India Next-2 in Sector 88A. Plot agreements were later executed in 2014 and 2015. The agency stated that project layouts were subsequently changed, and the original plots were relocated, renumbered, or sold to other buyers. In Vatika India Next-2, no plots out of roughly 1.10 lakh square yards purchased for about ₹90 crore were delivered after nearly 14 years, while delivery in the other project remained only partial, leaving plots worth about ₹140.73 crore undelivered.

Financial Diverts

The ED reported that project land was held through about 22 group companies that lacked employees or independent business activities, functioning mainly to provide corporate guarantees and manage land banks, including mortgages to financial institutions. An analysis of Vatika Limited bank accounts revealed that buyer funds were diverted to other group companies and promoter-linked entities rather than being used exclusively for the projects. In 2024, Scaler Ventures paid ₹473.18 crore under an agreement to sell and a buy-back agreement. The agency alleged that only 15 of the 165 plots were bought back, and 14 of the remaining 150 plots were sold to third parties for about ₹13.62 crore without Scaler's knowledge or consent.

Context

Money-laundering probes involving real estate developers often focus on the diversion of buyer funds and delays in project delivery. Real estate regulations in India require builders to keep a large share of buyer deposits in dedicated accounts to ensure project completion.