ED Custody for Six Days, Allegations of Funds Diversion to Shell Companies and Foreign Entities
The Enforcement Directorate (ED) arrested Ashish Bhalla, promoter of the Delhi-NCR-based realty group WTC, on Thursday in a major money laundering case involving alleged misuse of homebuyers' funds. Bhalla was apprehended under the Prevention of Money Laundering Act (PMLA), and a special court in Gurugram has remanded him to ED custody for six days.The investigation, spearheaded by the ED, accuses the WTC group of promising assured returns to investors for plots and commercial spaces but subsequently diverting substantial amounts to various shell companies. The agency claims these diverted funds were then channelled into acquiring lands at multiple locations.
Funds Worth Hundreds of Crores Sent to Entities Linked to Bhalla’s Family
According to the ED, significant sums amounting to hundreds of crores were also allegedly routed to suspicious entities based in Singapore. These entities are reportedly beneficially owned by Bhalla’s family members, highlighting a serious international dimension to the case.During its probe, the ED found that the WTC Group collected over ₹3,000 crore from investors across multiple states including Haryana, Uttar Pradesh, Chandigarh, Ahmedabad, and Punjab.
Bhalla Allegedly Absconded During Recent ED Raids
The recent arrest followed a series of raids conducted by the ED on February 27, targeting properties linked to Ashish Bhalla, the WTC Group, and the Bhutani Group, including its promoter Ashish Bhutani. The ED claims Bhalla had attempted to evade authorities during these raids and even influenced key persons against cooperating with the investigation.Describing Bhalla as the "key beneficiary" and "mastermind," the ED asserted that he gained unlawful profits through fraudulent schemes orchestrated by the group.
FIRs by Delhi Police and Faridabad Police Triggered ED Investigation
The ED’s money laundering case is rooted in multiple FIRs registered by the Economic Offences Wing (EOW) of Delhi Police and Faridabad Police. These complaints accuse the promoters and directors of the WTC group, including Ashish Bhalla, Suparna Bhalla, Abhijeet Bhalla, and associated entities such as Bhutani Infra, of criminal breach of trust, fraud, and cheating hundreds of homebuyers.The complaints specifically allege that WTC Faridabad Infrastructure Pvt Ltd lured investors into buying residential plots in Sector 111-114, Faridabad, promising timely project completion. However, plots were allegedly never delivered, even after more than a decade.
Bhutani Infra Cuts Ties with WTC, Cooperates with Investigation
Responding to the allegations, Bhutani Infra clarified last week that it had severed all ties with WTC Group earlier this month. The company emphasized it is fully cooperating with the ED’s ongoing investigation. WTC Group has yet to issue any official response to the allegations.Additionally, the ED disclosed that Bhutani Infra allegedly acquired WTC and re-launched the disputed project, further complicating matters for investors. This re-launch reportedly caused additional confusion and led investors into surrendering their investments.
ED Recovers Crucial Documents and Assets Worth Thousands of Crores
During its recent searches, the ED discovered documents indicating fund collections exceeding ₹3,500 crore related to 15 different projects across Delhi-NCR. Moreover, the agency identified several incriminating documents pointing to sophisticated fund layering and diversion strategies.The ED has also frozen substantial fixed deposits belonging to WTC Group and seized jewellery and bullion valued at ₹1.5 crore. Assets amounting to thousands of crores have reportedly been identified under WTC Group's name, further intensifying the financial gravity of the case.
The investigation continues as the ED seeks to unravel deeper layers of financial misconduct associated with this high-profile real estate scandal.
