ED searches two Nagpur sites linked to builder Shashank Pande, seizes Rs 1.95 crore cash

The Nagpur office of the Enforcement Directorate (ED) searched two places in Nagpur district linked to builder Shashank Govindprasad Pande, the agency said. Pande is the owner of Prayag Developers and Builders. The action was taken in an alleged money laundering case.

The searches were carried out on October 26 under the Prevention of Money Laundering Act (PMLA), 2002. Unaccounted cash of Rs 1.95 crore, incriminating documents and digital devices were seized. Bank accounts holding more than Rs 40 lakh were also frozen. The ED has also traced some immovable properties suspected to have been bought with proceeds of crime.

According to the ED's investigation, Pande had entered into a development agreement with a senior citizen widow. It promised her Rs 1.75 crore and 14 residential flats after he obtained development rights to her land, it is alleged.

The investigation alleges that the flats set aside for her were fraudulently sold to third parties, without informing her and without her consent, after the relevant declaration was cancelled. Pande allegedly misappropriated Rs 8.93 crore from these sales. A further Rs 45 lakh was never paid. The woman's alleged total loss thus came to Rs 9.4 crore.

The second case relates to the Divya Prayag Apartment project. A loan of Rs 22 crore had been sanctioned for the project by Dewan Housing Finance Corporation Limited (DHFL), of which Rs 11 crore was actually disbursed. The ED found that 22 flats had been mortgaged in return.

Pande is alleged to have sold these flats without obtaining a no-objection certificate (NOC) from the lender and without telling buyers about the mortgage. He is also accused of concealing the mortgage and giving the bank a false affidavit.

The outstanding dues are said to have reached Rs 12.84 crore. Proceedings were then initiated under the SARFAESI Act.

The ED's investigation is based on FIRs registered at the Ajni and Ranapratap Nagar police stations in Nagpur. The offences were registered under Sections 418 and 420 of the Indian Penal Code, 1860. Further investigation is under way. All the allegations depend on the outcome of the legal process.