The Enforcement Directorate (ED) has conducted searches at seven locations belonging to IREO and M3M groups in Delhi and Gurugram in connection with the allegation of diversion and misappropriation of funds, the agency said on Monday.
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It added that the probe is based on multiple cases registered against the IREO group. “The investigations done by the ED showed that huge amounts of money running into hundreds of crores were siphoned off through M3M group also,” read its statement.
According to the agency, in one of the transactions, the M3M group received about ₹400 crore from the IREO group through several shell companies in multiple layers. “The transactions were shown in the books of IREO as payments towards development rights. The land was owned by M3M group and the market value of the land was around ₹4 crore. M3M group initially sold the development rights of the said land to five shell companies for a payment of ₹10 crore,” it said.
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The accused claimed that the five entities were unrelated companies. However, as alleged, they were operated by M3M group. The shell companies immediately sold the development rights of the same land to the IREO group for about ₹400 crore. After receiving the amount, they transferred it to the M3M group through multiple shell companies and layers, the ED alleged.
All the shell companies were allegedly owned and operated by the M3M group under the directions of its promoters, Basant Bansal and Roop Kumar Bansal and his family members. “In this way, IREO and M3M siphoned off about ₹400 crore belonging to investors/customers and the proceeds of crime remained with the M3M group which was used by the M3M for other investments/paying off liabilities,” the agency alleged.
The IREO group allegedly did not make any efforts to develop the land and started to write off the investments every year. “During the course of search action..., the owners/controllers/promoters of the M3M group, namely Basant Bansal, Roop Kumar Bansal and Pankaj Bansal, and other key persons deliberately avoided investigations,” the ED said.
The agency has seized 17 high-end luxury vehicles worth about ₹60 crore, jewellery/bullion worth ₹5.75 crore, ₹15 lakh in cash and incriminating evidence, it said.