In one of the most significant real estate fraud crackdowns in recent memory, the Enforcement Directorate (ED) has arrested Anil Mithas, the promoter of Unnati Fortune Holdings Limited (UFHL), for his alleged role in a ₹522.90 crore real estate scam in Noida. The arrest came after the ED conducted a series of search operations across eight locations in Agra, Meerut, Noida, and Delhi.
According to ED’s official statement, the searches were carried out under the Prevention of Money Laundering Act (PMLA), 2002. These raids were part of an ongoing investigation into the massive financial misappropriation and cheating of homebuyers by UFHL and its associated shell companies.
The Case That Shook Noida’s Real Estate Sector
From 2012 to 2019, UFHL collected over ₹522.90 crore from homebuyers for its ambitious residential and commercial project ‘Aranya’ in Sector 119, Noida. Despite the substantial funding, the project never saw timely construction progress, leaving hundreds of homebuyers in limbo and financial despair.
Complaints began piling up with UP-RERA, local police, and consumer forums. Several First Information Reports (FIRs) were registered by Uttar Pradesh Police and the Delhi Economic Offences Wing (EOW) under various sections of the Indian Penal Code, including Section 420 (cheating) and Section 120-B (criminal conspiracy).
The ED Raid and Discovery of Fake Financial Transactions
During the raids, the ED seized a significant amount of digital and physical evidence, including sale deeds, investment records, and transaction data. Officials noted that these documents would be crucial for further interrogation of Anil Mithas, who has been taken into 7-day custody by court order.
The forensic audit, conducted by Currie & Brown and BDO India LLP, exposed a detailed web of financial misconduct. Funds intended for construction were instead diverted to shell companies, bogus firms, and related parties through fake loans, inflated share premiums, and non-existent procurement transactions.
Some of these transactions were cleverly masked as advance payments for materials, while in reality, no deliveries ever occurred. Others were categorized under “share premium” routes—again, highly inflated and lacking proper documentation.
A Trail of Shell Companies and Double Allotments
Perhaps the most shocking revelation was that multiple flats were sold to more than one buyer, exposing a deeper criminal conspiracy and intent to defraud. The money trail uncovered how bogus companies were created solely for the purpose of laundering and siphoning funds, ultimately halting the project and devastating the lives of hundreds of families.
The investigation also highlighted how some of these shell companies later forfeited the funds without any accountability, further reducing the chances of recovery for homebuyers.
Legal Proceedings and Ongoing Investigations
In 2018, a financial creditor filed for insolvency proceedings against UFHL in the National Company Law Tribunal (NCLT), Delhi. The case is still pending, but with the ED’s latest actions, it may finally gain momentum.
The ED has made it clear that the probe is ongoing and that further arrests, fund seizures, and recovery processes may follow.
Final Thoughts
The Unnati Fortune scam is a cautionary tale for real estate buyers and investors in India. It highlights the urgent need for regulatory vigilance, transparency, and accountability in the real estate sector. As the investigation continues, it is expected that more names and entities involved in this organized financial fraud will surface.
Stay tuned for more updates on this case and other major financial crime stories from across India. If you are a buyer impacted by the UFHL projects, consider approaching legal forums like NCLT, UP-RERA, or seek class-action collaboration.
