Mumbai: The Enforcement Directorate (ED) on Tuesday arrested RK Arora, the chairman of the real estate company Supertech, in a money-laundering case.
The ED had been investigating Arora for alleged financial irregularities in the construction of Supertech’s Emerald Court project in Noida. The project was ordered to be demolished by the Supreme Court in August 2021 after it was found to have been built in violation of building norms.
The ED’s investigation found that Arora had allegedly laundered money through a complex web of shell companies. The money was allegedly used to acquire assets in India and abroad.
Arora was arrested from his office in Delhi. He was produced before a Delhi court on Wednesday, which remanded him in ED custody for five days.
The ED’s arrest of Arora is a major blow to Supertech. The company is already facing a crisis after the Supreme Court ordered the demolition of its Emerald Court project. The arrest of Arora could further damage the company’s reputation and make it difficult for it to raise funds.
The ED’s investigation into Supertech is also a sign of the government’s increasing focus on cracking down on money laundering in the real estate sector. The government has been concerned about the misuse of black money in the sector, which has led to a rise in the prices of real estate.
The arrest of Arora is a warning to other real estate developers who may be involved in financial irregularities. The government is sending a clear message that it will not tolerate corruption in the real estate sector.
In addition to the money-laundering charges, Arora is also facing charges of forgery and cheating. The ED is probing whether he forged documents to obtain loans from banks.
Arora is the second high-profile real estate developer to be arrested by the ED in recent months. In May, the ED arrested the chairman of the Unitech Group, Sanjay Chandra, in a money-laundering case.
The arrests of Arora and Chandra are a sign of the government’s increasing focus on cracking down on corruption in the real estate sector. The government is sending a clear message that it will not tolerate corruption in this important sector.