Unsold Shops And Spaces In Noida's GIP Mall Attached By ED In Rs 300 cr Cheating Case

Noida: The Enforcement Directorate (ED) on Thursday said that it has seized properties worth over Rs 290 crore belonging to an amusement and recreation services provider, including assets located in the prominent GIP Mall of Noida, as part of a money laundering probe.

The company in question, International Amusement Limited (the holding company of International Recreation and Amusement Ltd. (IRAL)), stands accused of allegedly amassing over Rs 400 crore from approximately 1,500 investors with promises of allotting shops and other spaces in Sector 29 and 52-A of Gurugram, said the probe agency.

However, the company purportedly failed to fulfill its commitments, missing project deadlines and failing to make monthly assured return payments to investors. The ED alleges that the company diverted investors' funds and transferred them to associated persons and entities for personal gains.

The agency further alleged that promotor directors executed back-dated agreements with the buying entity to remove business advances from IRAL's balance sheet, thereby allowing the departing directors to evade their obligations to IRAL.

According to the ED, the directors of International Recreation and Amusement Ltd. allegedly siphoned off more than Rs 400 crore belonging to investors of the Gurugram project. They allegedly intended to park the investors' funds with related entities, sell off the company at undervalued prices, and absolve themselves of all investor liabilities.

As part of the provisional attachment, assets worth Rs 291.18 crore belonging to International Amusement Limited, including unsold commercial space spanning 3,93,737.28 sq ft at the Great India Place Mall (GIP) in Noida, have been seized. Additionally, commercial space of 45,966 sq ft held by Adventure Island Limited in Rohini and leasehold rights over 218 acres of land in Daulatpur village Tehsil, Jaipur, held by International Amusement and Infrastructure Limited, have been provisionally attached.

The ED issued the attachment order on May 28 under the provisions of the Prevention of Money-laundering Act (PMLA).

(With inputs from PTI)