January 30, 2024: The Directorate of Enforcement (ED) conducted search operations on January 23, 2024, at 20 locations in Chandigarh, Panchkula (Haryana), Zirakpur (Mohali, Punjab), Baddi and Solan (Himachal Pradesh) under the Prevention of Money Laundering Act, 2002, in the case of Haryana Shahri Vikas Pradhikaran (HSVP earlier known as HUDA-Haryana Urban Development Authority) fake refund scam.
The ED initiated an investigation based on an FIR registered by the Haryana Police under various sections of the Indian Penal Code, 1860 against the Haryana Shahri Vikas Pradhikaran (HSVP earlier known as HUDAHaryana Urban Development Authority). The ED investigation revealed that various persons, firms and companies have fraudulently availed government funds misusing HSVP bank account during the period 2015 to 2019,” the agency said in a statement, adding that this caused a financial loss of approximately Rs 70 crore to the government exchequer.
The ED investigation also revealed that government funds were repeatedly released in favour of the beneficiaries in suspected connivance with some officials of the HSVP, it said.
“These beneficiaries were prima facie not related to any kind of regular services, investment or other financial activities of the department and record of these transactions was also not available with the HSVP. It was also found that various shell entities such as Unicity Constructions etc. had been incorporated and used by the beneficiaries for layering, rotation and usage of proceeds of crime for investment into various immovable properties and other expenses,” the ED said.
During the searches, various documents related to immovable properties worth approximately Rs 11 crore were found and seized along with cash of Rs 19 lakh. The searches also unearthed 115 bank accounts which are suspected to be involved in layering and rotation of proceeds of crime. Further, various incriminating documents, electronic devices and books of accounts of various firms and companies were also found and seized.
Further investigation is under progress.
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