ED Uncovers Massive Fraud and Money Laundering Scheme Involving WTC Group and Bhutani Group; Raids Net Rs. 3500 Crore in Suspicious Transactions
(Judicial Quest News Network)
In a significant crackdown on alleged financial fraud, the Directorate of Enforcement (ED) has conducted extensive search operations across 12 locations in Delhi, Faridabad, and the NCR region. The raids, carried out on January 27, 2025, target the WTC Group and Bhutani Group, along with their respective promoters, Ashish Bhalla and Ashish Bhutani. The search is part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002.
The ED’s investigation follows a series of complaints from hundreds of homebuyers and investors who have accused both groups and their promoters of large-scale cheating, criminal breach of trust, and fraud. These complaints have led to the registration of numerous FIRs by the Police Stations EOW New Delhi, BPTP Faridabad, and Faridabad Central. The complaints highlight the alleged malpractices involving the WTC Group and Bhutani Infra, particularly relating to the non-delivery of residential plots and failure to complete construction projects for over a decade.
According to the FIRs, WTC Faridabad Infrastructure Pvt. Ltd., under the leadership of its promoters, enticed the public to invest in residential plots at their project site located at Sector 111-114, Faridabad. However, the developers allegedly failed to deliver the plots within the promised time frame, leaving investors in a state of disarray for more than 10 years. Moreover, the Bhutani Infra Group later took over the WTC project, re-launching it but continuing to mislead plot buyers and investors by encouraging them to surrender their units.
During the recent raids, ED officials uncovered shocking evidence of illegal fund collection amounting to over Rs. 3500 Crore across 15 projects in the Delhi/NCR region. However, only a few of these projects have seen any progress or delivery, pointing to what investigators describe as a well-orchestrated Ponzi scheme. These findings suggest the creation of assets under different entities and the illicit diversion of funds abroad. The ED also discovered that over Rs. 200 Crore had been transferred to Singapore and the USA, indicating that the promoters were using the funds to acquire overseas assets.
Furthermore, incriminating documents related to asset transfers between the WTC Group and Bhutani Group were seized during the raids. These documents reveal that assets worth billions of rupees were transferred at nominal values, thus facilitating the transfer of the proceeds of crime (POC). Cash transactions, too, were uncovered, pointing to the large-scale financial misconduct orchestrated by the groups.
In addition to the financial documents, the search yielded digital devices such as laptops and hard drives containing critical information on the diversion and layering of funds. The ED also seized property documents, including sale and registration deeds, which detail assets in the name of the WTC Group. Authorities identified assets worth thousands of Crore, including Fixed Deposits in the name of the WTC companies, which have now been frozen. In addition, jewellery and bullion valued at Rs. 1.5 Crore were also seized during the operation.
The ED’s investigation into the WTC and Bhutani groups remains ongoing. Photographs of the Faridabad project taken during the raid show that no construction work had been carried out for more than 10 years, further indicating that funds collected from investors were siphoned off to other group entities and abroad.
As the investigation progresses, authorities are expected to take further legal action against those involved in this massive fraud scheme, which has impacted hundreds of investors and homebuyers. The case highlights the serious nature of financial malpractices in the real estate sector and the need for increased vigilance in tracking illegal financial activities.
