The Gurugram zonal office of the directorate of enforcement (ED) conducted search operations last week at 12 locations in Delhi, Faridabad and the National Capital Region (NCR) region. The searches targeted the WTC group, its promoter Ashish Bhalla, as well as Bhutani group and its promoter Ashish Bhutani, under the Prevention of Money Laundering Act (PMLA), 2002. ED's action has unearthed large-scale financial irregularities, including siphoning over Rs200 crore to Singapore and the US, pointing towards illegal overseas investments.
ED investigation was initiated based on multiple first information reports (FIRs) registered by the economic offences wing (EOW) in New Delhi, BPTP Faridabad, and Faridabad central police stations. Complaints from hundreds of home-buyers and investors alleged cheating, criminal breach of trust and fraud committed by WTC group and its key figures, including Ashish Bhalla, Suparna Bhalla, Abhijeet Bhalla and Bhutani Infra.
The FIRs claim that WTC Faridabad Infrastructure Pvt Ltd lured buyers into investing in a project at sector 111-114, Faridabad, promising residential plot allotments. However, the promoters allegedly orchestrated a criminal conspiracy, failing to complete the project and withholding plot deliveries for over a decade.
The investigation has revealed that WTC group collected over Rs3,500 crore across 15 projects in the Delhi-NCR region. Despite this, very few project deliveries were made, indicating a Ponzi-like scheme designed to misappropriate funds. ED search also uncovered incriminating documents, digital evidence and records of money transfers, all pointing to an elaborate financial fraud.
Further findings from ED suggest that assets worth thousands of crores in market value were transferred from WTC group to Bhutani group at nominal rates, potentially laundering the proceeds of crime. Additionally, the agency uncovered significant cash transactions, along with numerous documents detailing fund diversions, layering of financial transactions and property-related fraud.
During the searches, investigators seized multiple sale deeds, registration documents, digital storage devices, laptops and hard drives. The ED has identified fixed deposits belonging to WTC group companies and frozen them, along with seizing jewellery and bullion worth Rs1.5 crore.
In response to allegations of financial or operational ties with WTC, Bhutani Infra issued a statement categorically denying any involvement in land or fund transfers from the controversial real estate group. "No land or funds were transferred to Bhutani Infra during its brief association with WTC, including any share transfers in land-holding companies to Bhutani Infra or its directors," the company clarified.
Bhutani Infra stated that it had completely severed ties with the WTC Group in February 2025, just six months after signing a memorandum of understanding (MoU) in July 2024. The company emphasised that it has no financial or operational connections to WTC and that any suggestion to the contrary is false and misleading.
Despite having no obligations related to WTC, Bhutani Infra said it has been offering support and guidance to distressed customers while fully cooperating with ED in the ongoing investigation.
Meanwhile, thousands of home-buyers and investors under the umbrella of the Worried Troubled Customer Association (WTCA) are calling for urgent government intervention in what is being described as one of India's largest real estate frauds, involving Mr Bhalla and WTC Noida Development Company Pvt Ltd. The scam, spanning four states—Uttar Pradesh, Haryana, Punjab, and Gujarat – and 17 projects, has left over 20,000 buyers stranded with incomplete developments and financial losses amounting to thousands of crores.
In a statement, WTCA says, "Despite substantial evidence of fraudulent activities, regulatory bodies such as Securities and Exchange Board of India (SEBI), Real Estate Regulatory Authority (RERA) and consumer forums have failed to take effective action, leaving investors with no recourse. The most glaring failure lies with the serious fraud investigation office (SFIO) and the national company law tribunal (NCLT), where an emergency application under section 241 of the Companies Act has remained unresolved for over 28 months."
The Association claims that, on 24 July 2022, it submitted a comprehensive complaint to SFIO against WTC Noida Development Company, uncovering a large-scale financial scam involving fraudulent assured return schemes. In response, the SFIO filed an application (CP-156/2022) with the NCLT on 29 September 2022, seeking government intervention in the company's management due to severe mismanagement and fraudulent activities.
"However, despite being an emergency provision, the case has faced repeated delays, with 29 hearings over 28 months yielding no substantial progress. Each hearing is stalled due to the absence of either SFIO's legal representatives or those of the accused, raising concerns about possible interference by the fraudsters to manipulate the system and evade accountability," WTCA alleges.
Alka Jain, president of WTCA, alleges that while the NCLT case remains stalled, neither the SFIO nor any other authority has arrested the accused or seized their assets, allowing them to continue defrauding investors with impunity. "The inaction has emboldened Ashish Bhalla and his associates, who continue to operate freely despite overwhelming evidence of financial misconduct at an industrial scale."
According to the Association, market regulator SEBI reversed its stance on treating the WTC Group case as a collective investment scheme (CIS) and instead shifted the responsibility to RERA.
"Despite receiving hundreds of complaints, RERA from four states did not initiate forensic audit in the matter. Official filings before Punjab RERA indicate Rs372 crore collected, Rs284 crore withdrawn, and 0% project completion, yet no action has been taken. Further, there are 338 complaints have been lodged in UP RERA against WTC group, but no meaningful intervention has occurred," WTCA added.
The Association has urged prime minister (PM) Narendra Modi and the Union ministry of corporate affairs (MCA) to intervene and ensure justice is delivered without further delay to home-buyers and investors of WTC group.
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