The Enforcement Directorate (ED) has provisionally attached properties valued at Rs 634.12 crore linked to the Unitech Golf & Country Club (UGCC) project in Noida under the Prevention of Money Laundering Act (PMLA). The agency said the move targets leasehold rights and equity interests held through consortium and special-purpose vehicles that, it alleges, represent proceeds of crime arising from the diversion of funds belonging to homebuyers and financial institutions.

“ED initiated investigation on the basis of 76 FIRs registered by Delhi Police and CBI against Unitech Limited, its Promoters/Directors and others under various sections of IPC, 1860 and Prevention of Corruption Act, 1988 relating to cheating, criminal conspiracy and diversion of homebuyers’ funds,” the probe agency said in a statement.

Here’s the scope of the attachment

The Headquarters Investigation Unit of the ED issued a Provisional Attachment Order covering-

  • Leasehold rights over about 347.83 acres of land in Noida’s Sectors 96, 97 and 98.
  • Equity shareholdings held through consortium/Special Purpose Company structures, including interests tied to Sungrace Products (India) Pvt. Ltd. (part of the Uflex Group) and CIG Infrastructure Pvt. Ltd.

The agency said the presently assessed fair market value of the attached assets in the UGCC project stands at Rs 8,115 crore, while the specific properties provisionally attached under the order amount to Rs 634.12 crore.

Allegations of fund diversion

According to the ED, its investigation found that Unitech Limited received Rs 16,075.89 crore from homebuyers, investors and financial institutions. Of that sum, the agency alleges that Rs 7,794.35 crore was diverted for non‑mandated purposes. The diverted money is said to have generated proceeds of crime that were routed into the UGCC project and related entities.

“Funds amounting to Rs 7,794.35 crore were diverted for non‑mandated purposes,” the ED stated in its press release, adding that the assets attached represent proceeds of crime generated through diversion of funds of homebuyers and financial institutions.

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Targeted entities and alleged undue interest

The ED further asserted that Sungrace Products (India) Pvt. Ltd. and CIG Infrastructure Pvt. Ltd. continued to derive and retain substantial economic interest in the UGCC project despite not making corresponding financial contributions toward acquisition or development of the project. These equity holdings, the agency says, were acquired via consortium and special‑purpose company structures and are covered by the attachment order.

Related FIRs and prosecutions

The ED’s probe was initiated after reviewing 76 first information reports (FIRs) registered by the Delhi Police and the Central Bureau of Investigation (CBI) against Unitech Limited, its promoters, directors and others. The FIRs allege offences including cheating, criminal conspiracy and diversion of homebuyers’ funds under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988.

So far, the ED has provisionally attached 1,296 movable and immovable properties in the broader Unitech matter, with a total attached value of Rs 2,281.07 crore. The agency has filed one main prosecution complaint and two supplementary prosecution complaints before the Special PMLA Court in Delhi.

The ED said the provisional attachment forms part of its ongoing probe and is aimed at securing the proceeds of crime so that they may be restituted to innocent victims and lawful claimants. “The ED remains committed to securing and restituting the proceeds of crime to innocent victims of financial crime and lawful claimants in a transparent and expeditious manner,” the press release added.

Further investigation into the complex ownership structures, fund flows and alleged diversion is underway, the ED added. The provisional attachment can be followed by more actions—including further attachments, charge sheets and prosecution—depending on the probe’s findings and the course of litigation before the Special PMLA Court.