ED Attaches Assets Worth ₹121.80 Crore in Massive Real Estate Fraud Case Involving Neomax Group
(Judicial Quest News Network)
Chennai, April 9, 2025: The Directorate of Enforcement (ED), Chennai Zonal Office, has provisionally attached movable and immovable properties valued at ₹121.80 Crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in a major crackdown on fraudulent real estate operations led by Neomax Properties Private Limited and its group companies.
The properties, located across various districts in Tamil Nadu, are linked to Neomax Properties Pvt. Ltd. and its associated entities—Garlando Properties Pvt. Ltd., Transco Properties Pvt. Ltd., Tridas Properties Pvt. Ltd., Glowmax Properties Pvt. Ltd.—along with their directors/shareholders, including Kamalakannan, Balasubramanian, Veerasakthi, Charles, and others. The market value of the attached properties is estimated to be around ₹600 Crore.
This action follows an earlier provisional attachment of properties worth ₹117 Crore (market value ₹207 Crore) on December 15, 2023, which has since been confirmed by the Adjudicating Authority under the PMLA.
The Fraud: High Promises, Higher Losses
ED launched its investigation based on an FIR registered by the Economic Offences Wing (EOW), Madurai, against the Neomax Group. The group allegedly enticed thousands of investors by offering unrealistic returns ranging from 12% to 30% on real estate development schemes—only to default on returns and plot handovers.
The probe revealed that the Neomax Group amassed massive funds—primarily in cash—from thousands of investors, and systematically diverted these to shell entities and group companies operating across diverse sectors, including:
- Hotels & Resorts
- Multi-Speciality Hospitals
- Pharmaceuticals & Distribution
- Renewable Energy
- IT & E-Commerce
- Construction & Real Estate
- Logistics & Retail
- Aerospace and Helicopter Charter Services
- Fashion, Jewellery, Furniture & Wellness Garments
- Education and More
₹8,000 Crore Owed to Investors
The ED’s investigation estimates that the group owes over ₹8,000 Crore to its depositors, including the falsely promised returns. Instead of honouring these commitments, the group coerced many investors into re-depositing their maturity amounts, further deepening the fraud.
Ongoing Investigation
The case is currently under further investigation. ED is committed to tracing and recovering defrauded public funds and bringing the perpetrators to justice.
