ED Clamps Down: Appu Ghar Group Assets Seized Amid Fraud Probe

The Enforcement Directorate has seized assets worth Rs 120.98 crore from International Recreation and Amusement Limited, part of the Appu Ghar group, amidst allegations of fraud and money laundering. The investigation, tied to unfulfilled investor promises, involves prominent figures Rakesh Babbar, Gyan Vijeshwar, and Robin Vijeshwar.

The Enforcement Directorate (ED) has moved to seize immovable assets of International Recreation and Amusement Limited, part of the Appu Ghar group, valued at Rs 120.98 crore. The agency announced this development on Thursday, targeting 25 acres of land in Sector 29 and 17 acres in Sector 52A, Gurugram, complete with unfinished buildings.

This asset attachment, conducted under the Prevention of Money Laundering Act (PMLA), 2002, was carried out on December 24. The Gurugram office of ED pursued this action as part of an extensive probe prompted by multiple FIRs lodged by the Gurugram Police against IRAL and its promoters—Rakesh Babbar, Gyan Vijeshwar, Robin Vijeshwar—alongside assorted associates, all accused of cheating and engaging in criminal conspiracy.

According to ED findings, IRAL had garnered over Rs 400 crore from 1,500 investors with the promise of retail shop allocations and virtual space in Gurugram's Sector 29 and 52-A, yet failed to deliver, missing project deadlines and withholding promised returns. Investigations indicate that IRAL promoters misused investor funds for personal gain, redirecting them to associated individuals and entities.

Further insights from the ED revealed backdated agreements were crafted between IRAL's departing director-promoters and an acquiring entity to mask business advances, effectively dodging responsibility for the corporate debtor's obligations. These moves come after the Insolvency and Bankruptcy Board of India's Disciplinary Committee suspended the Resolution Professional over severe allegations.

Despite six years passing since the Corporate Insolvency Resolution Process (CIRP) commenced, no resolution has emerged, compromising investor interests. This latest asset attachment complements the provisional seizure of Rs 291.31 crore in May, now totaling Rs 412.29 crore in claims confirmed by the PMLA Adjudicating Authority.

(With inputs from agencies.)