The Enforcement Directorate (ED), in a recent investigation, conducted raids on multiple premises belonging to Mumbai-based real estate company, Nirmal Lifestyle, in connection with a high-profile money laundering case. A Free Press Journal report mentioned that the company's promoters and directors, Dharmesh Jain and Rajiv Jain, are accused of defrauding numerous flat buyers by failing to deliver promised homes despite repeated deadline extensions.
ED Raids Nirmal Lifestyle's Premises in Money Laundering Probe
The Enforcement Directorate (ED) carried out raids on Thursday at various locations linked to Nirmal Lifestyle, a prominent real estate company based in Mumbai. The action was part of an ongoing investigation into allegations of money laundering against the company. Promoters and directors Dharmesh Jain and Rajiv Jain were the primary targets of the raids, which aimed to gather evidence related to the case.
Flat Buyers Duped of Crores by Nirmal Lifestyle
Nirmal Lifestyle is accused of duping flat buyers of a staggering ₹11 crore. The company allegedly promised homes to these buyers between 2010 and 2011 but failed to deliver, despite multiple extensions to the project's deadline. It is believed that around 54 flat buyers were affected by this fraud, all of whom made payments for flats in the Zircon project, a 39-story high-rise situated on LBS Marg in Mulund. Moreover, other buyers who invested in the Amethyst and Turquoise wings of the same project also faced similar circumstances, as their flats were not handed over despite payment.
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Economic Offences Wing's Investigation Leads to ED Case
The Mumbai police's Economic Offences Wing (EOW) registered three housing fraud cases against Nirmal Lifestyle, based on complaints filed by affected buyers. In April, the EOW arrested the developers involved in the scam. The EOW's probe revealed that Nirmal Lifestyle directors, including Dharmesh Jain, Rajeev Jain, Puja Jain, and others, diverted funds meant for the housing projects to their other companies and establishments. The FIR lodged by the Housing-2 unit of the EOW charged the directors under various sections of the Indian Penal Code and the Maharashtra Ownership of Flats Act (MOFA), with the total fraud amounting to ₹49.54 crore.
Unfulfilled Promises and Incomplete Projects
Investigations by the EOW uncovered a series of unfulfilled promises made by Nirmal Lifestyle to home buyers. The company assured buyers that the flats would be handed over by December 2015. However, the completion status of the Zircon, Amethyst, and Turquoise projects fell short of expectations. Only 90 percent of the work on Zircon, and 50-70 percent of Amethyst and Turquoise, was reportedly completed, leaving the buyers without possession of their flats.
Regulatory Intervention and Failed Project Completion
Affected home buyers lodged complaints with the housing regulator MahaRERA in April 2019. In response, MahaRERA extended the project completion deadline and directed the Jain duo to compensate the buyers with monthly rent. Despite these interventions and multiple deadline extensions, Nirmal Lifestyle failed to complete the projects as required, exacerbating the concerns of the home buyers.
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The ED raids on Nirmal Lifestyle's premises, along with the ongoing investigations by the EOW, shed light on alleged money laundering activities and housing fraud committed by the company. As the case unfolds, affected buyers continue to face uncertainty, awaiting justice and the fulfillment of their long-overdue dreams of owning a home.
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