ED attaches unsold commercial space in Noida's GIP mall over Rs 400 crore cheating case

The Enforcement Directorate (ED) has attached properties worth over Rs 290 crore belonging to International Amusement Limited, as part of a money laundering investigation. Some of the attached properties are in Noida's popular GIP mall.

This company, the holding entity of International Recreation and Amusement Ltd. (IRAL), is under scrutiny for allegedly defrauding investors.

Money laundering case

International Amusement Limited is accused of collecting over Rs 400 crore from approximately 1,500 investors, promising them allotment of shops and other commercial spaces in Sector 29 and 52-A in Gurugram. However, the company failed to deliver on its promises, missing project deadlines and halting the assured monthly returns to investors.

The ED's statement alleges that the company siphoned off the investors' money, redirecting the funds to associated individuals and entities for personal use. It further claims that a back-dated agreement was executed between the promoter directors and the buying entity, EOD, to remove the business advance from IRAL's balance sheet. This maneuver allegedly allowed the departing directors to evade their responsibilities towards IRAL.

The directors and promoters of IRAL are accused of deliberately misappropriating over Rs 400 crore from the Gurugram project investors, with the intention of parking these funds in related entities. They then allegedly sold the company at low valuations to avoid investor liabilities.

Assets worth Rs 291.18 crore have been attached under the Prevention of Money-laundering Act. These assets include unsold commercial space measuring 3,93,737.28 sq ft at the Great India Place Mall (GIP) in Noida, commercial space of 45,966 sq ft held in the name of Adventure Island Limited in Rohini, and leasehold rights over 218 acres of land at Daulatpur village, Tehsil in Jaipur, held by International Amusement and Infrastructure Limited.

This attachment order was issued on May 28 as the investigation continues into the alleged financial misconduct and money laundering activities involving International Amusement Limited and its associated entities.

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