ED conducts searches at three locations linked to Aryan Hometech in ₹90 crore scam

The Enforcement Directorate (ED) on Wednesday conducted search operations at three different locations linked to Aryan Hometech Private Limited. This action was taken in connection with an alleged case of ₹90 crore fraud and money laundering. The company's directors, Bharat Reddy and Rashmi Bharat Reddy, were targeted in this investigation. The agency stated that criminal documents and other valuable records were seized during these searches.

The primary reason for the crackdown is complaints filed by landowners, homebuyers, and financial institutions, based on which the police had registered several FIRs. According to a report by The Hindu, local police had filed a 'C' report in some cases stating that the accused could not be traced, but ED investigators succeeded in locating the accused before conducting the search operations.

The investigation has revealed that Aryan Hometech had entered into a Joint Development Agreement with landowner B.G. Anjinappa to develop two projects, Aryan Fountain Square and Aryan Golden Arena. Under this agreement, the developer's share was fixed at 63% and the landowner's share at 37%. The agency alleges that the company's directors defrauded Anjinappa by failing to construct and hand over the apartments allocated as per the agreement.

Additionally, the company's directors had made Anjinappa a guarantor for institutional loans taken by the company. Consequently, to save his own land without receiving any compensation from the developer, Anjinappa had to pay a large portion of the loan himself. The investigation further revealed that the company's directors had also absconded with approximately ₹90 crore collected from homebuyers and investors for the construction of the project. The agency alleged that as part of money laundering, these funds were diverted to family members and family-owned entities.

Aryan Hometech Private Limited was a real estate developer company involved in the construction of various residential projects.