• Regulatory
• 2 min read

Gurugram court orders 14-day judicial custody for Vatika's CMD in money laundering case

The Enforcement Directorate has arrested Anil Bhalla, chairman of Vatika Ltd, who is now in judicial custody concerning a money-laundering case. His detention, initiated alongside Gautam Bhalla on September 28, is tied to accusations of fraudulent practices in the sale of residential plots. The ED alleges that large sums were mishandled, affecting purchasers' rights. Bhalla will remain in custody for 14 days as the investigation unfolds.

Bhalla was arrested by ED’s zonal office on Sept 28 under Section 19 of Prevention of Money Laundering Act (PMLA), along with Vatika promoter Gautam Bhalla. They were produced before the special court on Sept 29 and were initially remanded to ED custody till Oct 3.

Special judge Narender Sura on Tuesday accepted ED’s plea for 14 days’ judicial remand, observing that the investigation was still pending and finding the grounds cited for seeking judicial custody sufficient. Bhalla has been directed to be lodged in District Jail in Bhondsi and to be produced before the court through video conferencing on the next date.

ED had told the court that there was an apprehension that Bhalla could tamper with evidence or influence summoned witnesses, which could affect the ongoing investigation. The agency also reserved its right to seek further custody during the remaining permissible period under law, subject to the court’s permission. The court, meanwhile, allowed Bhalla to receive prescribed medicines and bedding from his family and permitted meetings with specified family members in accordance with jail rules.

The case stems from an ED investigation based on multiple FIRs registered by Delhi Police’s economic offences wing alleging fraudulent inducement, non-delivery of residential plots and related offences. According to ED, seven purchaser entities had paid around Rs 260 crore upfront between 2010 and 2012 for residential plots in Vatika India Next in sectors 84/85 and Vatika India Next-2 in Sector 88A.

The agency alleges that despite plot-wise agreements being executed in 2014 and 2015, project layouts were subsequently revised, allotted plots were renumbered or relocated and the land continued to be allotted or sold to other purchasers. It has claimed that no plot in Vatika India Next-2, involving around 1.1 lakh sq yards purchased for approximately Rs 90 crore, had been delivered even after about 14 years, while delivery in Vatika India Next remained partial. ED has put the value of substantially undelivered plots at around Rs 140.7 crore.

The agency has alleged that the project land was held through around 22 group companies and that money received from purchasers was transferred to other group and promoter-linked entities instead of being used exclusively for the projects for which it was collected. In a separate 2024 transaction involving Scaler Ventures, ED has alleged irregularities concerning 165 plots and said the proceeds of crime quantified so far were about Rs 154.3 crore.