ED seizes assets worth Rs 45 crore in Mumbai, Chennai money laundering probe – LSB

Garima
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The Enforcement Directorate (ED) has successfully completed search operations in Mumbai and Chennai, resulting in the seizure of assets collectively worth over Rs. 45 crores.

The operation focuses on Ramprasath Reddy, a former executive of Gateway Office Parks Private Limited (GOPL), who is involved in an alleged money laundering case involving misappropriation of Rs. 129 crores.

Searches conducted at over 14 locations on November 29 and 30 targeted assets including cash, bank balances, shares, immovable properties and high-end apartments in Mumbai and Chennai. ED also identified other properties allegedly acquired through proceeds of crime. Documents related to money laundering cases have been seized in the operation.

Ramprasath Reddy, a former GOPL employee, joined the board in May 2017 and served as the CEO of GOPL till October 2020. The company, earlier known as Sriram Properties and Infrastructure Pvt Ltd, was acquired by Xander in 2017 for Rs 2,300 crore. One of India’s largest private equity transactions in the real estate sector.

The money laundering case arose out of an FIR filed by the Crime Branch of the Chennai Police against Ramprasath Reddy and others, accusing them of siphoning off Rs. 129 crores. A complaint was filed by GOPL, Chennai, leading to an investigation by the ED

According to the ED, Ramprasath Reddy allegedly misappropriated Rs. 129 crore through a company owned by his family. Funds were diverted under the guise of payment for the supply of goods and services using fake invoices. Undisclosed cash and bank deposits Rs. 45 crore has been frozen under Section 17(1A) of the Prevention of Money Laundering Act (PMLA).

The Enforcement Directorate’s actions signal a strong response to financial irregularities, underlining its commitment to fight money laundering and ensure the integrity of financial transactions in the country.


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