Real estate giant Ansal API beneath the scanner in UP
Lucknow: Real property massive Ansal API, entrusted with around 90 initiatives in Uttar Pradesh, now finds itself beneath the scanner for alleged fraud, criminal breach of trust and diversion of price range.
The modern-day blow came remaining week when a Lucknow court docket issued a non-bailable warrant (NBW) towards the company’s pinnacle control, along with chairman Sushil Ansal and his son Pranav Ansal.
“Two administrators of the firm — Arun Mishra and Harish Gulla — have been arrested following the court docket’s NBW inside the depend,” said Avineshwar Chandra Srivastava, Gomti Nagar Circle Officer (Deputy Superintendent of Police) in Lucknow. “The NBW turned into issued towards 5 persons. The closing 3 are nonetheless absconding.”
The corporation’s internet site, but, identifies Gulla as senior VP of enterprise development.
The court docket order pertains to a case of fraud filed towards the firm by using a domestic consumer in Vibhuti Khand suburb of Lucknow. The complainant had alleged that in spite of paying Rs 15 lakh to the institution in 2011, he had not been given the 1800 rectangular feet plot that the realtor had promised, police said.
Despite repeated attempts, the group could not be reached for comment. This copy may be updated after they provide a comment.
Resignation of Ansal CEO and fraud
The weeks that preceded these arrests not only witnessed a surge in lawsuits towards the realtor but also the resignation of a top control head inside the firm.
Citing fitness reasons and family compulsions, Ansal organization’s leader executive officer and joint coping with director, Anil Kumar, resigned from his posts in April this yr — it became at a time while the company changed into being investigated by way of the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) after allegations of fraud and diversion of funds got here to the authority’s note.
Moreover, around 3 months ago, but every other complaint of fraud in opposition to the Ansal institution reached the UP police. The complainant this time was some other massive commercial enterprise — a Kanpur-based tanner group, Super Tannery, which alleged that it was duped of nearly Rs five crore.
“More than five years in the past, the Ansal organization had an agreement with the Super Tannery institution over the Taj City project in Agra and nearly Rs 5 crore have been given to them. When so many years went through with none receipt of the promised plot, the Super Tannery organization approached them but their calls and requests went unanswered,” a senior UP police officer stated. “The institution then approached the police extra than a month ago and filed a case of dishonest and criminal breach of accepting as true within opposition to the pinnacle management of the company.”
The officer further maintained that the UP police administration become inside the process of collating all of the police instances towards the institution registered throughout the nation to take further movement.
Fungible use of Rs 606 crore: UP RERA
Alarm bells in the UP authorities corridors rang final yr whilst UP RERA acquired round four hundred lawsuits towards the institution for non-transport of their residences and its failure in refunding their cash. Following this, a Delhi-based company Currie and Brown have been roped into behavior a forensic audit.
UP RERA Chairman Rajive Kumar advised The Print that the company allegedly diverted around Rs 606 crore from various initiatives out of total funding of around Rs 2, four hundred crores. Around ninety tasks of the realtor group in UP includes “either plotted traits or flats”.
“Some of these initiatives are entire but quite some of them are still incomplete. We had issued notices to the Ansal organization, asking them to tell us their plan of action to finish those tasks,” he stated. “In the preliminary audit, it became shown that some amount of cash which changed into obtained towards those tasks become in reality used elsewhere by the institution.”
Among the ninety-abnormal projects of the Ansal API group is the Sushant Golf City Hi-Tech Township mission spread across 6,000 acres at the Lucknow-Sultanpur Highway, a three-hundred-acre township on the Delhi-Dehradun Bypass in Meerut, any other township assignment called Sushant Taj City in Agra (information about initiatives, township) and high upward thrust organization housing projects in Ghaziabad and Greater Noida.
Responding to the initial audit performed by RERA, the Ansal organization had told the actual estate regulator that the diverted money changed into either used to pay off loans or to pay off shoppers who wanted a reimbursement. “They additionally claimed that the cash turned into used for a few other initiatives inside the township,” Kumar said. “There are diverse heads underneath which this money has supposedly been used. Unless the detailed reply comes, it will be difficult to finish what it was used for.”
RERA officers maintain that they’re waiting for a reply from the group on the notices issued to them. “The diverted cash needs to be explained and also on how they may be going to put cash returned into the tasks and complete them in a time-bound style,” Kumar stated. “I am advised that they are in the technique of filing a response that should be with us inside the next few days. The authority will then take a name each on the notices and their reply.”