The Directorate of Enforcement (ED), Mumbai, has issued two Provisional Attachment Orders under the provisions of Prevention of Money Laundering Act (PMLA), 2002 attaching assets worth ₹48.67 crore of Jitendra Jain and ₹15.29 crore of Parvath Shetty and others in the money laundering case related to M/s Kamala Landmarc.
Mr. Jain is the Director in various partnership firms and private companies owned by M/s Kamala Landmarc Group of companies and Mr. Shetty is partner in Kamala Landmarc Builder firm.
The attached assets are in the form of immovable properties consisting of various flats worth ₹33 crore located in Mumbai, various agricultural lands worth ₹15 crore located across Maharashtra and plots worth ₹60 lakh belonging to Mr. Jain and his family members along with various flats worth ₹15.29 crore located in Mumbai belonging to Mr. Shetty and his relatives.
“ED has initiated investigation based on 37 FIRs registered by EOW Mumbai and various police stations in Mumbai against Jitendra Jain and others of Kamala Landmarc group of companies under various Sections of IPC, 1860 for alleged fraud and cheating against numerous flat buyers/investors and banks to the tune of ₹408.25 crore,” ED officials said in a release.
ED investigation revealed that Mr. Jain and others through M/s. Kamala Landmarc Group of companies had obtained loans from the Bank/FI and out of which loan amount of ₹110.90 crore was declared NPA by Bank/FI. “Jitendra Jain and others through M/s. Kamala Landmarc Group of companies obtained advances totaling approximately ₹297.35 crore from various individuals and entities in exchange for properties such as flats or units, but they failed to provide flats to them. The funds received as advances from customers, as well as loans availed from banks and non-banking financial companies, aggregating to ₹408.25 crore have been diverted or transferred to sister concerns, companies, firms, individuals, promoters, directors, and key managerial persons associated with the Kamala Landmarc group of Companies,” it said.
Further, to launder the proceeds of crime and project the same as untainted, the main accused Mr. Jain, in criminal conspiracy with Mr. Shetty transferred the ownership M/s. Kamala Landmarc Builders (one of the companies/firms of M/s. Kamala Landmarc Group of companies) to Mr. Shetty through forgery. Subsequently Mr. Shetty transferred the ownership of asset created in firm M/s. Kamala Landmarc Builders to his relatives to camouflage original ownership of asset, the release said.
Further investigation is under way.
