Unitech directors arrested on money laundering charges 
The founders and directors of Indian real estate giant Unitech, Sanjay and Ajay Chandra, have been arrested on charges of money laundering. The brothers have "failed to deliver" on a project called Anthea Floors in the city of Gurugram, according to a senior Delhi police official. Law enforcement professionals found that the proposed project consisted only of filled land and a handful of sewerage pits. The legal action comes as Unitech has struggled to fund its housing ventures, with some 17,000 buyers waiting for their homes to be completed. 

Fix the system, says CREDAI boss

Unitech MD Sanjay Chandra arrested by Delhi Police

NEW DELHI: Sanjay Chandra and Ajay Chandra, the owner-directors of real estate major Unitech Limited , were remanded in two days' police Fix the system, says CREDAI boss , custody on Saturday following their arrest by the Delhi Police's economic offences wing (EOW) for allegedly duping over 550 customers over the proposed 'Wildflower Country' housing project for floors named "Anthea Floors" in Gurgaon's Sector 70."The investigating officer is entitled to a thorough investigation so as to ascertain the involvement of other conspirators, if any. Submission of the arrested accused persons that they have nothing further to say would not preclude the investigating officer from taking police custody," additional chief metropolitan magistrate Ashu Garg observed.The Delhi Police found that in the proposed project, only land filling was done and a few sewerage pits had been constructed, otherwise there were no signs of construction. The EOW said that the Chandras claimed to have utilised Rs 94 crore of the money Unitech received from all customers and financial institutions. The EOW has alleged that the Chandras cheated many investors. In this case, 91 homebuyers, who had paid Rs 35 crores for apartments, never got their flats and approached the court. The EOW further claimed that about Rs 203 crore was collected from about 557 homebuyers and they even took loans from banks. The prosecution asserted that the accused failed to construct the projects and didn't utilise the money for the housing project. The EOW also alleged that the company did not have approvals from the competent authorities and building plans were yet to be sanctioned. The entire amount, except around Rs 10 lakh, supposed to be kept in escrow accounts, has been allegedly siphoned off.Defence counsel for the Chandras, Vijay Aggarwal and Rinku Garg, argued that as far the money trail is concerned, there are bank statements of the Chandras and the company. Therefore, it was argued, there was no need to send their clients to police custody. "We have given everything we had in our possession to the investigating agency as FIR was registered in 2015 and probe is going on for the past two years," the counsel said.But the judge said, "In my considered view, police custody of the accused persons is extremely necessary to recover the relevant documents and information either from the accused persons or their instance. Again, the money trail has to be ascertained and the accused persons would be required to disclose the mode, manner and destination where the money was appropriated."Delhi Police officers say the Chandras have been booked under Section 409, 420 and 120B. "We have sought a remand and would question them based on the evidence provided against them," said a police officer.The latest case is likely to put enormous pressure on Unitech. In a number of cases, the National Consumer Disputes Redressal Commission has passed orders against the company asking them to return the money with interest at the rate of 12%. But the company has moved the Supreme Court against the judgment.In 2016, the Supreme Court had asked the company to deposit Rs 5 crore for delaying the completion of a project in Noida. Early this year, the court had asked the company to pay Rs 2 crore to 39 flatbuyers in one of its projects in Gurgaon.In fact, almost all of over two dozen projects of the company have been delayed. Some of the prominent names are Unitech Grande and Unihomes in Noida, Uniworld and Unitech Horizon in Gr Noida, Anthea and Unitech Spa in Gurgaon.Buyers have refused to pay any dues as the company has stopped construction work. Unitech says that if buyers pay the dues, it can still complete the project.Gurgaon police are also planning to seek their custody for 150 similar cases.CREDAI president and CMD of ATS Getamber Anand said authorities should try to develop a mechanism with developers and buyers to ensure that projects can be completed and end users get their flats, even if it leads to bankruptcy of defaulter developers.