ED conducts raids in Rs 523 crore homebuyer fund diversion case linked to Unnati Fortune

The Directorate of Enforcement (ED), Lucknow Zonal Office, carried out search operations at eight locations across Agra, Meerut, Noida, and Delhi on April 17, 2025, in connection with an ongoing money laundering probe against Unnati Fortune Holdings Limited (UFHL) and its promoter Anil Mithas. The searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The raids were aimed at unearthing the Proceeds of Crime (POC) allegedly siphoned off by Mithas and his associates and were conducted at the residential and office premises of UFHL, Mithas, and other related entities. The ED’s probe is based on multiple FIRs filed by the UP Police and the Delhi Economic Offences Wing under various sections of the Indian Penal Code.

Rs 522.9 Crore Collected from Homebuyers, But Project Remains Incomplete

ED officials said that UFHL raised Rs 522.90 crore from homebuyers between 2012 and 2019 for its residential-cum-commercial project, Aranya, located in Sector 119, Noida. However, the project failed to meet its completion timeline, leaving hundreds of buyers in the lurch.

Unnati Fortune also defaulted on repayments to financial creditors, leading to the initiation of insolvency proceedings before the National Company Law Tribunal (NCLT), Delhi in 2018. The case remains pending.

Funds Diverted to Shell Entities, Fake Loans and Struck-Off Companies

The ED’s investigation has revealed that large sums were diverted from the homebuyer corpus to various shell companies and related entities with no connection to construction activity. The fund diversion occurred via fictitious loans and advances, inflated share premiums, and dubious deposits, according to forensic audits conducted by Currie & Brown on behalf of UPRERA and BDO India LLP on behalf of the Insolvency Resolution Professional.

Several of these entities have since been struck off the MCA records. Additionally, it has emerged that multiple flats were sold fraudulently to more than one buyer, amplifying the financial damage.

ED Recovers Digital Evidence, Documents During Search; Anil Mithas in Custody

During the search operations, the agency recovered multiple digital devices and documents, including sale deeds and investment records. These are currently under forensic scrutiny and are expected to be used during the interrogation of Anil Mithas, who has been remanded to seven days’ ED custody by a competent court.

The ED has termed the act a case of organized financial fraud and criminal conspiracy, highlighting violations under IPC Sections 420 and 120-B, with the diverted funds qualifying as proceeds of crime under PMLA.

Insolvency Proceedings Ongoing Amidst ED Probe

With insolvency proceedings already in motion and the promoter under investigation for alleged money laundering, the possibility of relief for Aranya homebuyers remains uncertain. The financial strain of stalled construction, coupled with legal costs, continues to burden homebuyers.

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