Money laundering: Proclamation proceedings against GBP directors

Chandigarh, January 24

Special Judge, PMLA Court, has begun proclamation proceedings against Satish Kumar Gupta and Pradeep Kumar Gupta, directors of Gupta Builders and Promoters Private Limited (GBP), in a case filed by the Enforcement Directorate (ED) following a complaint.

The court has also issued non-bailable warrant against another accused, Raman Gupta.

The complaint was filed by the Directorate of Enforcement for an offence punishable under Section 174 of the Indian Penal Code, 1860, read with Section 63 of the Prevention of Money Laundering Act, 2002. It is alleged in the complaint that the ED had issued many summons under Section 50 of theh Prevention of Money Laundering Act, 2002, to the accused for submission of documents and submitting the statements, but they failed.

The ED alleged that the accused wilfully neglected and failed to appear on the summons issued to them.

The ED is probing the money laundering aspect against the builder stemming from multiple cheating cases filed by homebuyers against the directors. The investors alleged that the group had failed to offer the possession of the flats as promised despite taking money from them.