CHENNAI: In a significant development in the multi-crore land acquisition fraud case, the Enforcement Directorate (ED) on Monday (November 24), arrested Aashish Jain, a director of Arihant Shelters. His arrest follows last week's extensive searches conducted by the agency across 15 locations in Chennai, Kancheepuram, and Chengalpattu.
Jain has been apprehended for his alleged involvement in a large-scale conspiracy involving the forgery of land records and wrongful claims of compensation from land acquisitions carried out by the National Highways Authority of India (NHAI).
The ED's investigation, initiated based on multiple FIRs filed by police in Sriperumbudur and Kancheepuram in 2021-22, unraveled a sophisticated scheme to get compensation from NHAI and Sipcot.
According to the ED, the accused employed a calculated four-step plan:
1. Unlawful Cancellation: Using forged documents to cancel the original deeds registered in favour of public authorities.
2. Resale to Associates: Selling these reclaimed public utility lands to controlled or dummy buyers.
3. Value Inflation: Artificially showing a high purchase price in sale registration documents to create a false market value.
4. Fraudulent Claims: Using these inflated valuations to secure exorbitant compensation from NHAI for the Bangalore-Chennai Expressway.
The agency stated, "After receipt of the compensation, the proceeds were layered through multiple bank accounts of associates, relatives, and shell entities." It was also found that large cash withdrawals, amounting to several crores, were made to conceal the origin of the illicit funds.
During the searches on November 19, the ED seized substantial incriminating evidence, including documents related to forged land records, digital evidence, and internal communications among the conspirators. The operation also led to the seizure and freezing of assets worth a total of Rs 18.10 crore including cash of Rs 1.56 crore, frozen bank balances worth Rs 8.4 crore and frozen shares: Rs 7.4 crore
The ED's actions have corroborated its initial findings from bank statements and witness testimonies, revealing a complex network used to circulate and disguise the "Proceeds of Crime." The Madras High Court had previously taken note of such fraudulent activities, observing that they resulted in a "severe loss to the public exchequer."
With the arrest of Aashish Jain, the probe has intensified. Further investigation into the wider conspiracy and the roles of other individuals and public servants is underway.