Omkar Group Chairman Kamal Gupta.
Omkar Group Chairman Kamal Gupta and Managing Director Babu Lal Verma were remanded to Enforcement Directorate custody till at least January 30. They were arrested a day earlier in connection with the slum rehabilitation fraud case.
Gupta and Verma were taken into custody after they allegedly refused to cooperate in the money laundering probe. They were produced before a Special PMLA Court on January 28, which decided to send them to ED remand for at least the next two days.
Omkar group is alleged to have taken thousands of crores in loans from several banks, including an exposure of Rs 450 crore from YES Bank, for the slum rehabilitation project.
The company, however, has refuted the allegations of financial irregularities. The issue, it claimed, pertains only to a Rs 410 crore funding case - an FIR in relation to which has been filed with Aurangabad's economic offences wing (EOW).
The ED officials began searching the premises of Omkar Group earlier this week, with raids at 10 premises on January 25. The raids continued till the morning of January 27.
A large number of incriminating documents were recovered from the offices and residences raided by the ED officials, sources told Moneycontrol.
Babulal Verma and Kamal Gupta were brought to the ED office for questioning on the afternoon of January 27, shortly before being taken into custody.
A petition against Omkar Group and Golden Age group of Companies was filed in the Bombay High Court in 2019, alleging a fraud in the slum rehabilitation project in Mumbai.
The petition alleged that the two firms had indulged in forgery of documents, creating false documents in the name of slum-dwellers. The Mumbai Police's EOW has been investigating the case against Omkar Group.
According to the petition, the Slum Rehabilitation Authority (SRA) allegedly aided Omkar Group in receiving the Letter of Intent (LoI) - which was used for availing loans from various banks. Notably, Omkar Group is the largest real estate company involved in the slum rehabilitation project.