ED Raids Nagpur Developer Over Multi-Crore Fraud
ED seizes cash and freezes accounts of Prayag Developers owner Shashank Pandey in a multi-crore fraud case involving an elderly widow.
The Enforcement Directorate (ED) has launched a massive crackdown on a prominent real estate businessman in Maharashtra, conducting raids across Nagpur to uncover a complex web of money laundering. The operation targeted Shashank Govindprasad Pandey, the owner of Prayag Developers and Builders, following serious allegations of a Nagpur real estate fraud involving millions of rupees.
Cash Seized and Accounts Frozen
During the searches conducted on October 26, agency officials targeted two specific locations in Nagpur. The raids yielded significant results as the ED recovered 19.5 million rupees in unaccounted cash. In addition to the physical currency, the agency has frozen bank accounts containing more than 4 million rupees as part of the ongoing investigation under the Prevention of Money Laundering Act (PMLA).
The Heart of the Deception: A Widow Betrayed
The investigation centers on a shocking breach of trust involving an elderly widow. The victim had entered into a land development agreement with Shashank Pandey, which promised her a substantial return for her property. According to the agreement, the woman was supposed to receive:
- 14 residential flats.
- A direct payment of 17.5 million rupees.
However, the ED alleges that Pandey played a double game. Instead of honoring the contract, he reportedly sold those 14 flats to third-party buyers without the woman's knowledge or consent, effectively stealing her promised assets.
Hidden Mortgages and Buyer Deceit
The fraud did not stop with the elderly woman. The agency's investigation has revealed further irregularities in how Prayag Developers and Builders operated. It is alleged that Pandey mortgaged 22 flats to secure loans from financial institutions.
Crucially, the ED claims that Pandey deliberately concealed these mortgages from the people who bought the flats. This means unsuspecting buyers may have purchased properties that were already pledged as collateral for loans, leaving them in a precarious legal and financial position.
Ongoing Investigation
The Enforcement Directorate is continuing its probe to trace the full trail of the laundered money and determine if other victims were targeted by the developer's schemes. As the agency scrutinizes the financial records of Prayag Developers and Builders, further revelations regarding the scale of the fraud are expected.