ED Files Supplementary Complaint as the Directorate of Enforcement (ED) has stepped up its investigation into a major money laundering case involving a real estate company and its promoters. The agency has filed a supplementary prosecution complaint in connection with an alleged ₹126 crore scam linked to the diversion of homebuyers’ funds. This latest legal action highlights the government’s continued efforts to tackle financial crimes in the real estate sector and ensure accountability for misuse of public money.

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The case involves Unnati Fortune Holdings Limited (UFHL) and its promoters and directors, including the main promoter, Anil Mithas. The ED’s action follows earlier investigations and builds on evidence already submitted before a special court.

Background of the Case

The investigation began after multiple First Information Reports (FIRs) were registered by the Uttar Pradesh Police against UFHL and its key officials. These FIRs were filed under various sections of the Indian Penal Code for cheating, criminal breach of trust, and other related offences.

Based on these FIRs, the ED initiated a probe under the Prevention of Money Laundering Act (PMLA), 2002. The agency suspected that large sums of money collected from homebuyers and investors for housing projects were not used for their intended purpose. Instead, the funds were allegedly diverted and routed through several financial channels to hide their origin.

The case soon emerged as a major example of how complex financial structures can be misused to generate and conceal proceeds of crime.

Supplementary Complaint Under PMLA

The ED Files Supplementary Complaint through its Lucknow Zonal Office before the Special Judge (Anti-Corruption), CBI, Ghaziabad. This supplementary prosecution complaint has been filed under relevant sections of the PMLA.

A supplementary complaint is filed when investigators gather additional evidence after submitting the main or initial prosecution complaint. It allows the agency to place new facts, documents, and findings before the court without starting a fresh case.

In this matter, the supplementary complaint includes further details about the alleged money laundering activities, the flow of funds, and the role of the accused individuals and companies.

Alleged Diversion of Funds

According to the ED, between 2011 and 2019, Anil Mithas and other accused persons diverted around ₹126 crore that was collected from homebuyers and investors. These funds were meant to be used for the construction and development of housing projects.

Instead of being utilized for project completion, the money was allegedly transferred to related entities and shell companies. The ED claims that this was done through a variety of financial instruments, such as:

Equity investments
Preference shares
Debentures and bonds
Loans and advances
Security deposits

These transactions were allegedly structured in a way that made them appear legitimate on paper, while actually serving the purpose of siphoning funds out of the company.

Use of Layered Transactions

One of the key findings of the investigation is the use of layered transactions. Layering is a common technique in money laundering where funds are moved through multiple accounts, entities, or instruments to make tracing difficult.

The ED believes that the accused used several layers of transactions to distance the illegal money from its original source. By routing funds through multiple companies and financial instruments, the accused allegedly attempted to disguise the proceeds of crime as legitimate business transactions.

Such methods, the agency says, point to a well-planned strategy to generate, use, and conceal illicit funds.

Impact on Housing Projects

The alleged diversion of funds had a serious impact on UFHL’s real estate projects. Several housing developments reportedly remained incomplete or were significantly delayed due to lack of funds.

As a result, hundreds of homebuyers who had invested their life savings were left without possession of their homes. Many buyers also faced financial stress as they had to continue paying home loan installments while waiting for their flats to be completed.

The ED has stated that this situation caused substantial losses to:

Homebuyers
Individual investors
Financial institutions and lenders

At the same time, the accused promoters and directors are alleged to have gained wrongful benefits from the diverted money.

Arrest and Searches

Anil Mithas was arrested by the ED on April 16, 2025, in connection with the case. He is currently in judicial custody.

Following his arrest, the agency conducted searches at multiple locations linked to UFHL, its promoters, and associated entities. During these searches, officials seized documents, electronic devices, and digital records.

These materials are being examined to trace the movement of funds and identify other individuals or entities that may have been involved in the money laundering network.

Attachment of Assets

As part of its investigation, the ED has provisionally attached movable and immovable assets worth approximately ₹126 crore. These assets are believed to represent the proceeds of crime or to have been acquired using laundered money.

Provisional attachment is a legal process under the PMLA that prevents the accused from selling, transferring, or disposing of the suspected assets while the investigation and trial are ongoing.

The attached assets reportedly include:

Bank balances
Properties
Investments held in the names of UFHL, its promoters, and related entities

Earlier Prosecution Complaint

Before filing the latest supplementary complaint, the ED had already submitted an initial prosecution complaint in June 2025. The Special PMLA court took cognisance of this complaint in August 2025.

With the ED Files Supplementary Complaint, the agency has now placed additional evidence and findings before the court, strengthening its case against the accused.

Wider Significance

This case highlights the growing scrutiny of financial practices in the real estate sector. Over the years, complaints about delayed projects, fund diversion, and cheating of homebuyers have increased across the country.

Enforcement actions like this send a strong message that misuse of public money and manipulation of financial systems will not be tolerated. They also underline the importance of transparency, proper accounting, and strict regulatory oversight in large-scale housing projects.

What Lies Ahead

The supplementary complaint marks another step in a long legal process. The court will examine the new evidence submitted by the ED and decide on further proceedings.

Meanwhile, the investigation is still ongoing. The agency may identify more assets for attachment, trace additional money trails, or name other individuals and companies if their involvement is established.

For thousands of affected homebuyers, the hope is that the legal process will eventually lead to accountability and, possibly, recovery of at least a part of their lost money.