The Enforcement Directorate (ED) on June 1, 2023, raided seven locations of IREO Group and M3M Group in Delhi and Gurugram. The raids were conducted under the Prevention of Money Laundering Act (PMLA) in connection with a case of alleged money laundering by the two companies.
The ED alleged that IREO and M3M had siphoned off around ₹400 crore (US$5.1 million) of home buyers’ money through shell companies. The ED also seized luxury cars, jewellery, and cash worth around ₹60 crore (US$7.6 million) during the raids.
ED has carried out search operations on 01.06.2023 under the PMLA,2002 at 07 locations of Delhi/ Gurugram belonging to IREO Group and M3M Group for diverting / siphoning off/ misappropriating funds.
— ED (@dir_ed) June 5, 2023
The IREO Group is a real estate development company that was founded in 2005. The company has developed several projects in Delhi, Gurgaon, and Noida. The M3M Group is another real estate development company that was founded in 2002. The company has developed several projects in Gurgaon and Delhi.
The ED has filed a charge sheet against IREO and M3M Group in the case. The charge sheet has named several people, including the promoters of the two companies, as accused. The ED has also attached assets worth around ₹100 crore (US$12.7 million) of the two companies.
The ED is investigating the case to ascertain the exact amount of money that was siphoned off and the role of the accused persons. The ED is also trying to find out if the money was used for any other illegal activities.
The raids on IREO and M3M Group have raised concerns about the safety of home buyers’ money. The raids have also raised questions about the role of regulators in the real estate sector. The raids have also sent a strong message to the real estate sector that the ED will not tolerate any illegal activities.