ED attaches Rs 121.80 crore assets in money laundering case of Neomax Properties Pvt Ltd
This action follows an earlier provisional attachment of properties worth Rs 117 crore on December 15, 2023, confirmed by the PMLA Adjudicating Authority
Enforcement Directorate (ANI)
CHENNAI: The Directorate of Enforcement (ED provisionally attached movable and immovable properties of real estate company Neomax Properties Private Ltd valued at Rs 121.80 crore on April 9, 2025, in connection with a money laundering probe against its group companies and directors.
The attachment of assets, done by the Chennai zonal office of ED, is spread across the State, and carries an estimated market value of Rs 600 crore, marking a significant escalation in the crackdown on alleged financial fraud by the real estate conglomerate.
This action follows an earlier provisional attachment of properties worth Rs 117 crore on December 15, 2023, confirmed by the PMLA Adjudicating Authority. Those assets had a market value of Rs 207 crore.
The ED's investigation stems from a Madurai Economic Offences Wing (EOW) FIR, which accused Neomax Properties Pvt Ltd and affiliated companies of defrauding thousands of investors by luring them with promises of high returns (12% to 30% interest) through real estate projects, only to default on repayments and plot allotments.
ED investigations revealed that Neomax Group companies, including Garlando Properties, Transco Properties, Tridas Properties, and Glowmax Properties, collected substantial funds—primarily in cash—from investors. These funds were allegedly diverted to shell entities and unrelated businesses, ranging from hospitality, healthcare, and renewable energy to aerospace services, e-commerce, and fashion jewellery. Directors of the conglomerate, Kamalakannan, Balasubramanian, Veerasakthi, Charles, and others, reportedly channelled deposits into these ventures instead of delivering promised returns.
The group owes approximately Rs 8,000 crore to investors, including accrued interest. Investigators found that the entities coerced depositors into reinvesting maturity amounts to avoid repayments, exacerbating financial losses for victims.
The ED emphasised that the latest attachment aims to secure proceeds of crime under the PMLA, 2002, while investigations continue to trace additional assets and uncover the full extent of the money laundering network. The case underscores systemic risks posed by unregulated investment schemes and highlights the agency's intensified efforts to clamp down on illicit financial flows in real estate and multi-sector ventures.
Authorities have urged affected investors to come forward with evidence as the probe progresses. With the total market value of attached properties now exceeding Rs 800 crore, the Neomax case ranks among Tamil Nadu's largest financial fraud investigations in recent years.
