ED arrests CMD of Mantri Developers in money laundering case

The Enforcement Directorate has arrested Sushil Mantri chairman and managing director (CMD) of Mantri Developers, in a money-laundering case.

As per the arrest document accessed by ET, the developer was arrested in a money laundering and fund diversion case and has been remanded to ED custody for investigation.

“Mantri Developers was impacted by the 2007 real estate slowdown and later during demonetisation. The builder had struggled to recover from the business losses. He owes around Rs 1000 crore to various financial institutions that have turned into NPA,” said one of the sources close to the development.

According to the ED arrest letter, Mantri was summoned for investigation under the Prevention of Money Laundering Act (PMLA) and taken into custody as per Section 19 of the PMLA.

The ED probe into the developer began on March 22, following an FIR filed in 2020 against the company, its directors, and many employees.

Many home buyers have filed complaints with the police and ED alleging that the accused entities and persons are involved in money laundering.

They alleged that the company lured prospective buyers through novel schemes, misleading brochures, and wrong delivery times for some of its projects.

The builder has been trying to solve his financial issues and even secured financial aid for his Mantri Serenity project from the government-backed SWAMIH Investment Fund in late 2020.

The project being developed by Mantri Developers had been in limbo for over a year due to a liquidity crunch.

“The project is well on schedule, and the SWAMHI fund is focused on completing the project. The development is unlikely to impact Mantri Serenity, “said a person close to the development. Mantri Serenity is being developed jointly by Mantri Developers and Gokulam Shelters, the land owner.

The SWAMIH funding is being used for the completion of the project situated on the Kanakapura Main Road.

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