ED seizes Rs 1.95 crore unaccounted cash in raids on Nagpur builder Shashank Pandey

The Nagpur office of the Enforcement Directorate (ED) raided two premises linked to builder Shashank Govindprasad Pandey in Nagpur district. Pandey is the proprietor of Prayag Developers and Builders. The action was taken on October 26 under the Prevention of Money Laundering Act (PMLA), 2002, and unaccounted cash of Rs 1.95 crore was seized.

Besides the cash, the ED took possession of several incriminating documents, records and digital devices. Bank balances of more than Rs 40 lakh have been frozen. The investigation has also identified several immovable properties worth crores of rupees, which are suspected to have been bought with proceeds of crime.

According to the ED's investigation, Pandey had entered into an agreement to develop the land of an elderly widow. Under the agreement, the woman was promised Rs 1.75 crore and 14 residential flats.

It is alleged that the deeds of the flats earmarked for the woman were cancelled without her knowledge and consent, and the flats were sold to third parties. Rs 8.93 crore received from the sale of these flats was allegedly misappropriated for personal use. A payment of Rs 45 lakh was also not made. The complainant is alleged to have suffered a total loss of Rs 9.4 crore.

The investigation has also found alleged irregularities in the Divya Prayag Apartment project. Twenty-two flats of the project had been mortgaged to Dewan Housing Finance Corporation Limited (DHFL) against a project loan of Rs 22 crore. Of this loan, Rs 11 crore had been disbursed.

It is alleged that Pandey sold these flats without obtaining the required no-objection certificate (NOC) from the bank. The buyers were also not told that the flats were mortgaged. A false affidavit was allegedly submitted to the bank in connection with a home loan, concealing the existing mortgage. Outstanding dues of Rs 12.84 crore then came to light, and action was initiated under the SARFAESI Act.

The ED began the investigation on the basis of an FIR registered at Ajni police station and Ranapratap Nagar police station in Nagpur under Sections 418 and 420 of the Indian Penal Code. Further investigation into the case is continuing.