Man nabbed for fraudulent sale of mortgaged property worth crores

The Delhi Police arrested a person in connection with a large-scale financial fraud involving the sale of a mortgaged property in Darya Ganj, officials said on Wednesday. The accused has been identified as Moshin Mohammed (36).

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The accused had been evading investigation and was arrested following a raid at a hotel in Nizamuddin (West) on March 26.

The police said a case was registered against Moshin following a complaint by Yes Bank Limited on October 2021.

M/s MK Overseas Private Limited was once a major meat exporter company, but is now under liquidation. It had obtained credit facilities amounting to Rs 95 crore from Yes Bank in 2016.

As security, a property located at 19C, Ansari Road, Darya Ganj, was mortgaged. However, on the direction of Moshin, several flats were constructed on the mortgaged land and sold to unsuspecting homebuyers without disclosing the encumbrances between March 2018 and May 2019.

“The fraudulent sale of these flats generated Rs 13 crore, which was diverted through an account opened in a Co-operative Bank. Out of this, over Rs 3.33 crore was withdrawn for personal use,” said Amrutha Guguloth, Additional Commissioner of Police (Economic Offences Wing).

Officials stated that Moshin deliberately avoided investigation and was changing mobile numbers frequently, procuring SIM cards under different names to evade tracking.

As a result, a proclamation under Section 82 of the CrPC was issued against him by the court. However following technical surveillance, the EOW conducted a raid and arrested him from a hotel in Nizamuddin (West).

“During interrogation, he admitted to misappropriating the funds of the company. Further investigations are on to examine the involvement of other individuals and trace the diverted money,” said Amrutha.

The accused has a history of financial fraud and is named in multiple cases under investigation by the Enforcement Directorate (ED), EOW, Delhi, and the Gautam Buddha Nagar police in Uttar Pradesh, the cops said.

“He was one of the directors at M/s MK Overseas Private Limited and was directly handling financial operations. The company secured multiple loans totaling around Rs 300 crore from various banks by mortgaging different properties. When the business suffered losses, they resorted to fraudulent means to siphon off company funds, ultimately defrauding the banks,” added the official.