Former Noida Authority CEO questioned by ED in Hacienda project scam

17 Oct 2024 CW Team

The Enforcement Directorate (ED) unit in Lucknow interrogated Mohinder Singh, a former IAS officer and the ex-CEO of Noida Authority, at its office on Wednesday.

The former officer, along with the promoters and directors of Hacienda Projects (HPPL), faced allegations of being involved in a scam valued at Rs 6.36 billion.

Sources from the ED reported that the former IAS officer was questioned for eight hours by the agency's officials. They indicated that while some documents were verified, further verification was still needed. He would be summoned again as necessary.

In the previous month, the ED had conducted raids at 12 locations across Meerut, Noida, Goa, Delhi, and Chandigarh, targeting the promoters and directors of Hacienda Projects (HPPL). The investigation was initiated based on an order from the Allahabad High Court issued on March 1, 2024.

A consortium of companies had been allocated land in Sector 107 as part of a group housing scheme initiated by the Noida Authority in 2010-11. Hacienda Projects (HPPL) was established as a special purpose vehicle for the construction and development of a residential project.

However, the promoters allegedly secured substantial parcels of prime land without any initial investment, launched a project, and collected Rs 6.36 billion from homebuyers. Of this amount, they reportedly siphoned off nearly Rs 1.90 billion, sold part of the land to a third company, pocketed the entire sale proceeds amounting to Rs 2.36 billion, and paid a minimal amount to the Noida Authority for land costs, premiums, and lease rent, which they were obligated to pay.

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