Delhi Police's Economic Offences Wing (EOW) has arrested Avdesh Kumar Goel, one of the managing directors of Earth Infrastructures Ltd on the charges of cheating home buyers and indulging in a criminal conspiracy.
He was arrested from the airport on the basis of look out circular when he was trying to leave the country for Bangkok. Goel was produced in a city court and remanded to two more days of police custody.
The EOW had received around 82 complaints from persons who had invested in Earth Titanium Studios project in Sector Techzone, Yamuna Expressway, Greater Noida.
Sources said the complainants had alleged that they were asked to pay large amounts of money by showing a rosy picture of the project. The company promised timely possession within three years and assured returns at the rate of 12 per cent per annum. Most investors had paid a sum of 80 to 90 per cent at the time of booking itself. But the company stopped paying assured returns in 2015 without giving any reasons.
During the EOW investigations, it was found that the company had not even started construction work at the project site. On the other hand it was sending letters and e-mails to investors saying construction was on at a fast pace. The company also demanded money for club charges.
The company did not respond to grievances and complaints of the investors and that the investors' money had been misappropriated by the directors of the company for personal gains.
The EOW officers had obtained the documents relating to the project from Greater Noida Industrial Development Authority (GNIDA). As per the documents, the allotment of the land measuring 30,3525 sq mts was initially made in favour of Ansal Properties and Infrastructure Ltd. Later, a tripartite sub-lease deed was also executed between GNIDA, Ansal IT City & Parks Ltd and Earth Iconic Infrastructures Pvt Ltd, wherein latter was made a sub-lessee/co-developer for an area of 135114 sq mts out of the total plot area after obtaining a letter of approval from Ministry of Commerce, thereby giving co-developer status to Earth Iconic Infrastructures.
The sub lease deed was signed by Avdesh Kumar Goel as director of Earth Iconic Infrastructures Pvt Ltd. As per the documents received from the Registrar of Companies, Avdesh Kumar Goel, Atul Gupta, Rajnish Mittal, and Vikas Gupta are directors of Earth Iconic Infrastructures Ltd since its date of incorporation in September 2011 and are holding one share each.
The majority remaining 9996 shares are held by the parent company M/S Earth Infrastructures Ltd, in which all directors are managing directors.
During the investigations, a notice was given to Ansal PT City & Parks Ltd, which stated when they had received communications from GNIDA that the co-developer Earth Iconic Infrastructures had received deposits from the public for allotting residential areas, they had asked Earth Iconic to refund the money to investors as the rules did not allow residential areas in SEZ.
However, when no response was received from Earth Iconic, Ansals took up the matter with GNIDA to cancel the tripartite land lease. Ansals managed to produce these communications before the police.
Police sources said Earth Iconic have neither made any construction for the project since 2012 when the company had started accepting booking amount from investors, nor has the company returned the money of investors. The company was not furnishing the relevant documents which were required for the investigation and officials were not cooperating in the probe.
The company had launched eight projects in Noida, Greater Noida and Gurgaon during the last 6-7 years but has not completed even a single project.
From application to refund, the Delhi Development Authority had this time planned to make the scheme an online affair to reduce the long queues of flat buyers at its headquarters.
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