In a significant development, the Directorate of Enforcement (ED) of India has seized assets worth over Rs. 6.85 billion (200 crore Indian rupees) in Colombo, as part of an ongoing money laundering investigation involving Krrish Realtech Private Limited, a Gurugram-based real estate company, Economic Times’s realty.com reports.
The assets include an under-construction luxury hotel and leasehold rights over four acres of prime land in Colombo 1, one of the most sought-after locations in Sri Lanka
The investigation revolves around allegations that Krrish Realtech Pvt. Ltd., promoted by Indian businessman Amit Katyal, duped numerous homebuyers in India.
Katyal, who is believed to have close ties to the family of prominent Indian politician Lalu Prasad Yadav, is accused of siphoning off funds collected from homebuyers to finance real estate projects abroad, including in Sri Lanka.
The ED alleges that the company misled investors by promising residential plots in Gurugram, India, but failed to deliver them even after 13 years.
The agency reported that over Rs. 17.22 billion (503 crore Indian rupees) collected from investors was diverted through fraudulent means, with a substantial amount transferred to a Sri Lankan company, The One Transworks Square (Pvt) Ltd., formerly known as Krrish Transworks Colombo Pvt. Ltd.
The seized assets in Sri Lanka include land and leasehold rights valued at Rs.2.05 billion (205 crore Indian rupees), realty.com says.
These were reportedly used to develop a luxury real estate project in Colombo.
The DE has also attached additional properties in Gurugram worth Rs. 190.8 million (19.08 crore Indian rupees).
This high-profile case highlights growing cross-border financial crimes and underscores the need for international cooperation to address economic offenses.
Authorities in Sri Lanka are expected to cooperate with Indian investigators to ensure these assets remain frozen as the investigation progresses.
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