ED Raids 2 Locations Linked to Prayag Developers, seizes Rs 1.95 crore cash

The Enforcement Directorate (ED), Nagpur, has seized unaccounted cash worth Rs 1.95 crore and frozen bank balances exceeding Rs 40 lakh during searches linked to real estate developer Shashank Govindprasad Pandey. The agency is investigating allegations that Pandey cheated several people, including an elderly widow, through property deals.

The ED conducted searches at two locations in Nagpur under the Prevention of Money Laundering Act (PMLA). Pandey is the proprietor of Prayag Developers and Builders. Officials also seized documents, records and digital devices during the operation. The searches led to the identification of several immovable properties worth crores of rupees, suspected to have been purchased after involvement in crime.

The investigation was initiated on the basis of cases registered at Ajni and Pratap Nagar police stations under Sections 418 and 420 of the Indian Penal Code.

According to the ED, Pandey entered into a development agreement with a senior citizen widow. Under the agreement, he was required to pay her Rs 1.75 crore and allot 14 residential flats.

The flats were earmarked in her name through a Declaration-cum-Correction Deed. However, the ED alleges that Pandey cancelled the deed without her knowledge or consent and sold the flats to other buyers. The sale proceeds of Rs 8.93 crore were allegedly diverted for his personal use. He also failed to pay her another Rs 45 lakh. The total loss to the woman was estimated at Rs 9.4 crore.

The agency also found irregularities in the Divya Prayag Apartment project. As many as 22 flats were mortgaged to Dewan Housing Finance Corporation Limited (DHFL) against a project loan of Rs 22 crore. Of this, Rs 11 crore was disbursed.

The ED alleges that Pandey sold these flats without obtaining a No Objection Certificate (NOC) from the lender or informing buyers about the mortgage. He also allegedly submitted a false affidavit to a bank while seeking a home loan.

The lender later reported outstanding dues of Rs 12.84 crore and initiated proceedings under the SARFAESI Act.

The ED suspects that the transactions caused losses to flat buyers and resulted in wrongful gains for Pandey. Further investigation is underway.