The Enforcement Directorate (ED) has conducted searches at the residence, farmhouse and office premises of former Haryana Minister Gopal Kanda in connection with an ongoing money laundering investigation into an alleged large-scale real estate fraud involving Vatika Limited.
The searches were carried out by the ED’s Gurugram unit under Section 17 of the Prevention of Money Laundering Act (PMLA). The investigation relates to four commercial real estate projects of the company, in which the agency alleges that a substantial amount of money was collected from investors on promises that were not fulfilled.
According to the ED, investors were allegedly induced to put their money into the projects on assurances of timely possession, assured returns, lease rentals and execution of sale deeds. However, the agency said that possession of the properties was not handed over and the promised sale deeds had not been executed in the cases under investigation.
The ED stated that the four projects collectively involved the collection of more than Rs 248 crore from 661 investors. Despite the collection of these funds, the investors have allegedly not received possession or the promised sale deeds to date, prompting the agency to investigate the movement and use of the funds.
The searches at premises linked to Gopal Kanda form part of the agency’s ongoing probe. During such searches, the ED is empowered under the PMLA to examine documents, records and other material relevant to the investigation.
The case highlights the agency’s continuing scrutiny of alleged financial irregularities in the real estate sector, particularly where investors are allegedly induced through assurances relating to possession, returns and property documentation. Further details regarding the material recovered during the searches and the next steps in the investigation are awaited.
