ED seizes ₹19 lakh cash, detects 115 bank accounts during raids in HSVP ‘scam’ case

The ED on Wednesday said ₹19 lakh in cash and property documents were seized while 115 bank accounts were unearthed during searches in Punjab, Haryana and Himachal Pradesh in a money laundering case linked to the alleged fraud of ₹70 crore at the Haryana Shahri Vikas Pradhikaran (HSVP), earlier known as HUDA.

The searches were launched on Tuesday.

A total of 20 locations in Chandigarh and Panchkula in Haryana, Zirakpur in Mohali, Punjab and Baddi and Solan in Himachal Pradesh were covered as part of the raids conducted under the provisions of the Prevention of Money Laundering Act (PMLA), the agency said in a statement.

The money laundering case of the ED stems from an FIR filed by the Haryana Police to probe alleged irregularities in the HSVP which was earlier known as the Haryana Urban Development Authority (HUDA).

According to the ED, a probe found that various people, firms and companies “fraudulently” availed government funds by “misusing” HSVP bank account from 2015 to 2019, leading to a financial loss of about ₹70 crore to the exchequer.

Government funds were repeatedly released in favour of the beneficiaries in suspected connivance with some officials of HSVP, it alleged.

“These beneficiaries were prima facie not related to any kind of regular services, investment or other financial activities of the department and record of these transactions was also not available with HSVP,” the ED said.

“It was found that various shell entities such as Unicity Constructions etc. had been incorporated and used by the beneficiaries for layering, rotation and usage of proceeds of crime for investment into various immovable properties and other expenses,” it said.

Documents related to immovable properties worth about ₹11 crore apart from cash of ₹19 lakh were seized during the searches.

As many as 115 bank accounts which are suspected to be involved in layering and rotation of proceeds of crime were also detected, it said.