ED ties Rs 300 crore assets of Bengaluru property company

The Law Enforcement (ED) Directorate said on Friday that it had provisionally seized assets worth Rs 300 crore from Mantri Group, a property company which allegedly deceived home buyers in Bangalore.

The ED said an “interim seizure order” under the Prevention of Money Laundering Act 2002 had been issued to seize immovable property worth Rs 300.4 crore in a case filed against Mantri Group for allegedly deceiving buyers in the company’s residential projects Mantri Serenity, Mantri Web City and Mantri Energia.

“M/s Castles Vista Private Limited (subsidiary of Mantri Developers Private Limited) and M/s Buoyant Technology Constellations Pvt. ltd. (subsidiary of Mantri Developers Private Limited) enticed homebuyers with painted-pink schemes, showing misleading brochures, falsification of delivery times and facade. But the apartments have not been delivered even after seven to ten years of depositing deposits with potential buyers,” the ED said in an official note.

The ED is investigating the case based on an FIR registered against the Mantri Group at Subramanyapura Police Station in Bengaluru. Lawsuits have also been filed against the company’s subsidiaries, directors and promoters for allegedly inducing buyers to make false promises.

The ED had arrested Sushil P Mantri, founder, promoter and director of Mantri Developers, in the case. It alleged that the money donated in good faith by the homebuyers was illegally misappropriated by Mantri Developers and its affiliates, “resulting in criminal embezzlement and diversion of Rs 300.4 crore for illicit purposes”.