Increase of scams in the real estate market
Most of the Real estate assets, farm lands, flats and many other such high-value properties worth crores of rupees were procured by the accused by “laundering” genuine investor funds of the scam-hit National Spot Exchange Limited (NSEL).
A charge-sheet filed by the Enforcement Directorate (ED) into the alleged multi-crore financial irregularities of NSEL found that a Mumbai-based firm, one of the prime accused in the Rs 5,600-crore payment crisis scam. This was deploying a clever modus operandi of claiming the investment in real estate purchased in the name of third party as unsecured loan”.
The agency which is looking into the case under provisions of the Prevention of Money Laundering Act (PMLA) had recorded in its previous charge-sheet that the same trick was used by other accused in order to cheat NSEL investors by purchasing the high-end vehicles, posh villas, plots, shares in beach-side hotels and vast tracts of agricultural land so that they can perpetrate the scam.
Generally the real estate funds come from genuine investors but the projects on which these are being invested have often resulted in scams. This has been coming up as a major problem in these days.
Source: Financial Chronicle
Increase of scams, National Spot Exchange Limited, Prevention of Money Laundering Act, real estate assets
