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ED arrests Ambience Mall owner Raj Singh Gehlot in bank fraud case worth Rs 200 crore

He was arrested in Gurugram and will be produced before a PMLA court in Delhi later today for a remand hearing.

July 29, 2021 / 03:58 PM IST
Enforcement Directorate

Enforcement Directorate

Raj Singh Gehlot, owner of Gurugram's Ambience Mall has been arrested by the Enforcement Directorate on July 29, in a bank fraud case. He was arrested in Gurugram and will be produced before a PMLA court in Delhi later today for a remand hearing.

An ED official told news agency IANS that the bank loan fraud case is worth Rs 200 crore. ED initiated the money laundering probe on the basis of an FIR registered by the Anti Corruption Bureau (ACB), Jammu, against Aman Hospitality Private Limited (AHPL) and its directors for money laundering in the construction and development of the five-star Leela Ambience Convention Hotel situated in east Delhi's Yamuna Sports Complex.

Investigations revealed that a major part of the loan amount of more than Rs 800 crore was siphoned off by AHPL and Gehlot and his associates through a web of companies either owned or controlled by them. The loan amount was sanctioned by a consortium of banks for a hotel project.

Additionally, a substantial part of the loan amount was transferred to several companies and individuals on the pretext of 'payment of running bills and advance for the supply of material/work executed'.  Employees of the Ambience Group and associates of Gehlot were made directors/proprietors of these companies.

"However, no material was supplied and no work was executed and almost the entire amount was immediately routed back to the entities owned by Raj Singh & Sons HUF and his brother's son. Money was further siphoned off through multiple layers by a complex web of group entities," the source said, as quoted by IANS.

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Around the same time last year, the ED had raided several premises linked to Gehlot and others as well.

Subquestently Gehlot is also being probed by the CBI in a case of illegal conversion of residential land.

The Punjab and Haryana High Court had directed the CBI to probe the case for the alleged illegal construction of Ambience Mall in Gurugram, on approximately 18.98 acres of land by blatantly flouting the building by-laws and statutory provisions in collusion with others.

It was alleged that the land where the Ambience Mall was built was meant for a housing project.

The CBI has registered a case against a private person, Gehlot, Ambience Ltd and Ambience Developers and Infrastructure Pvt Ltd and unknown officials of HUDA, Town and Country Planning Department and unknown private persons on the orders of the Punjab and Haryana High Court.

(With inputs from agencies)
Moneycontrol News
first published: Jul 29, 2021 03:58 pm
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