New Delhi: The Enforcement Directorate (ED) has seized movable and immovable properties across Tamil Nadu valued at Rs 121.80 crore as part of the ongoing investigation into Neomax Properties Private Ltd and its associated companies.
The properties were attached on April 9 under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the allegations against Neomax Properties and its subsidiaries—Garlando Properties Pvt Ltd., Transco Properties Pvt Ltd., Tridas Properties Pvt Ltd., and Glowmax Properties Pvt Ltd, along with their directors and shareholders, including Kamalakannan, Balasubramanian, Veerasakthi, Charles, and others. The ED’s Chennai zonal office is involved in the attachment process, which covers various locations in Tamil Nadu, with the total market value of the attached properties estimated at around Rs 600 crore.
This recent attachment follows a provisional attachment of properties worth Rs 117 crore initiated by the ED on December 15, 2023, which was later confirmed by the PMLA Adjudicating Authority, and valued at Rs 207 crore.
The ED began its investigation based on a first information report (FIR) filed by the Economic Offences Wing (EOW) in Madurai against Neomax Properties and its group companies. They are accused of deceiving numerous investors into depositing large sums into various real estate development projects by promising attractive returns of 12% to 30% interest. Ultimately, the company failed to deliver the promised returns and plots.
According to the ED, the investigation revealed that Neomax Properties Private Ltd and its associated companies, operating under the umbrella of the “Neomax Group,” raised substantial funds primarily in cash from thousands of investors. These funds were reportedly diverted to shell companies and other unrelated businesses, including hotels, multi-speciality hospitals, pharma distribution, construction, retail, renewable energy, information technology, automatic vending machine sales, battery refurbishment, e-commerce, logistics, furniture manufacturing, aerospace services (including helicopter and charter flight rentals), education, and wellness apparel.
The Neomax Group reportedly owes around Rs 8,000 crore to its depositors and investors. The ED stated, “The group has cheated investors by enticing them with high returns and misallocating the funds collected into unrelated businesses. They have also evaded repayment, encouraging depositors to reinvest their maturity amounts instead.”
