New Delhi [India], April 18 (ANI): The Enforcement Directorate (ED) has seized movable and immovable assets worth Rs 121.80 crores located in several areas throughout Tamil Nadu as part of the investigation into Neomax Properties Private Limited and associated firms.

On April 9, these assets were seized pursuant to the Prevention of Money Laundering Act (PMLA) of 2002, as part of an investigation involving Neomax Properties Private Limited along with affiliated entities—namely Garlando Properties Private Limited, Transco Properties Private Limited, Tridas Properties Private Limited, and Glowmax Properties Private Limited—and their leadership including Kamalakannan, Balasubramanian, Veerasakthi, Charles, and additional individuals.

The ED's zonal office in Chennai is linked with moveable and immoveable assets situated at multiple sites throughout Tamil Nadu. These seized assets have an approximate combined worth of Rs 600 crore.

This document outlines an additional provisional attachment of assets worth Rs 117 crore, executed on December 15, 2023, by the Enforcement Directorate (ED). This action has since been validated by the PMLA Adjudicating Authority. It’s noted that these seized assets have a current market valuation of Rs 207 crore.

The ED launched an inquiry following an FIR filed by the Economic Offences Wing (EOW) in Madurai against Neomax Properties Pvt Ltd and associated firms. The allegations include defrauding numerous investors who deposited substantial sums for various real estate ventures with promises of lucrative returns ranging from 12% to 30%. However, these individuals were reportedly deceived as they did not receive either their guaranteed yields or property allotments.

The ED probe found that Neomax Properties Private Ltd and various affiliated firms within the "Neomax Group" amassed substantial sums primarily through cash investments from numerous individuals. These funds were then channeled towards shell enterprises as well as internal group ventures involving sectors such as hospitality, healthcare, pharmaceuticals, real estate development, commerce, consumer goods stores, sustainable power solutions, IT infrastructure, automated dispensing systems, battery recycling facilities, online marketplaces, transportation networks, woodworking production and trade, aviation support—specifically helicopter rentals and chartered flights—and fields like academia, health & wellbeing products, clothing lines including both formal attire and leisurewear, dining establishments, accessories design, among others outside their corporate network.

The Neomax Group reportedly owes around Rs 8,000 crore, which includes the guaranteed payouts for depositors and investors, as stated by the Enforcement Directorate. The organization lured investors with substantial returns but defrauded them by channeling these funds towards unrelated business ventures. Additionally, they prevented repayments and persuaded depositors to reinvest their matured amounts instead. (ANI)