The Directorate of Enforcement (ED), Bengaluru, arrested builder Mahesh Bhupatkumar Oza, head of the Karan Group Builders and Developers-Mumbai, on Tuesday. The Prevention of Money Laundering Act (PMLA) special court granted his custody for 10 days.
A case was registered against Oza under the PMLA in a fraud and cheating case involving around Rs 500 crore. Multiple cases were registered against him across Karnataka in connection with the fraud and the cheating in real estate projects.
The Criminal Investigation Department (CID), Bengaluru, which had taken up the case, had arrested Oza and he was lodged in Central Prison, Parappana Agrahara.
During the investigation, the officials found that the complainants had invested around Rs 526 crore in different real estate projects undertaken by various groups and individuals. Subsequently, this amount was siphoned off by showing it as to be paid to various persons and collecting cash and commission in lieu of bank entry.
The investigation further revealed that out of the total investment of Rs 526 crore made by the complainants, bulk of the investment of Rs 121.5 crore was made for a real estate project undertaken by Karan Group Builders and Developers.
This amount received for the real estate projects was routed through various entities and subsequently diverted by Oza through another network of entities and people. Investigation is on.