Noida Developer Arrested in ₹165 Crore Bank Fraud Case: EOW Investigation Unveils Massive Real Estate Scam

A Shocking Revelation in Noida’s Real Estate Sector

The real estate landscape of Noida and Gurugram has been shaken by the arrest of Anil Mithas, the 52-year-old promoter of Unnati Fortune Holding Limited (UFHL). The Economic Offences Wing (EOW) of the Delhi Police has apprehended Mithas following an extensive investigation into allegations of financial misconduct involving bank loans worth over ₹165 crore. These loans, originally sanctioned to fund two high-profile real estate projects-Aranya in Noida’s Sector 119 and Alder Grove/Uniworld Resorts in Gurugram-were allegedly diverted away from their intended purpose. Instead of being invested in construction, the funds were siphoned off to shell companies and sister concerns linked to the Unnati Fortune Group, leaving the projects stalled and investors in distress. This arrest marks a significant breakthrough in the ongoing crackdown on financial fraud in India’s real estate sector.

The Loan Scam: How Funds Were Diverted

The fraud reportedly began with the sanctioning of ₹100 crore in 2016 and an additional ₹65 crore in 2017 by a private bank to UFHL. These loans were meant to finance the development of two ambitious projects that promised to add premium residential spaces to the NCR region. However, during the investigation, it was uncovered that the company did not utilize the funds for construction as intended. Instead, the money was redirected to various shell entities and sister concerns under the Unnati Fortune Group umbrella. This diversion not only stalled the projects but also raised serious questions about the financial integrity of the developer. The fraudulent transactions came to light during insolvency proceedings initiated in 2019, which further intensified scrutiny on the company’s financial dealings.

Insolvency Proceedings and Forensic Audit Expose Irregularities

The case gained momentum when a financial creditor approached the National Company Law Tribunal (NCLT) alleging that 75 flats mortgaged to them had already been mortgaged to the private bank. This discovery triggered the appointment of an interim resolution professional (IRP), who commissioned a detailed forensic audit covering UFHL’s financial transactions from March 2014 to March 2019. The audit revealed a series of alarming irregularities, including dual mortgaging of properties and the diversion of sanctioned funds to non-project entities. These findings provided concrete evidence of financial misappropriation and fraudulent activities within the company. The forensic audit played a crucial role in unraveling the complex web of deceit that had been woven by the accused.

Legal Actions and Charges Filed Against the Accused

Following the audit and investigation, the EOW registered a case under multiple sections of the Indian Penal Code, including Section 406 for criminal breach of trust, Section 420 for cheating, and Section 120-B for criminal conspiracy. Additionally, Section 409, which pertains to criminal breach of trust by a banker or agent, was invoked to address the specific nature of the financial fraud. Amrutha Guguloth, the Additional Commissioner of Police (EOW), confirmed that the documents recovered during the probe clearly established the misappropriation and fraudulent diversion of bank loans. Mithas’s arrest on May 8 adds to his existing legal troubles, which include other cheating cases and an ongoing investigation by the Enforcement Directorate. The authorities continue to delve deeper into the case, aiming to bring all responsible parties to justice.

Impact on the Real Estate Sector and the Need for Transparency

This high-profile case has sent ripples across the real estate industry, highlighting the urgent need for greater transparency, accountability, and regulatory oversight in property development projects. It underscores the risks that investors and homebuyers face when developers engage in fraudulent practices, jeopardizing not only financial investments but also the timely delivery of promised homes. The arrest of a prominent developer such as Anil Mithas serves as a stern warning to others in the sector and reinforces the commitment of law enforcement agencies to clamp down on economic offences. For those interested in following similar cases and understanding the broader implications on the real estate market, authoritative sources like Business Standard, Hindustan Times, and the Enforcement Directorate provide in-depth coverage and updates.