Money laundering probe: ED attaches 122cr property

Chennai: The Enforcement Directorate (ED) attached movable and immovable property worth 121.8crore belonging to Neomax Group as part of a money laundering probe.

ED said Neomax Group collected substantial funds, majority in cash, from thousands of people with the promise of high returns (12% to 30%) from investments in real estate. The funds were then diverted to its shell entities.

These entities are engaged in businesses in various sectors.

Owing around 8,000 crore, including the promised returns to the depositors, the Neomax Group avoided repayment and enticed customers to redeposit their maturity amount with the company.

ED initiated the investigation based on an FIR registered by the EOW, Madurai, against Neomax Properties Private Ltd and its group companies, including Garlando Properties Private Ltd, Transco Properties Private Ltd, Tridas Properties Private Ltd, Glowmax Properties Private Ltd, and its directors and shareholders Kamalakannan, Balasubramanian, Veerasakthi, and Charles.

ED said the market value of the attached property is 600 crore.

The agency had provisionally attached property worth 117 crore in 2023.

Meanwhile, a Kolkata ED team took possession of 60 hotel rooms and vacant land situated at Seven Hills Pamban Island Resort, Rameswaram, as part of the money laundering investigation against TM Traders and KK Traders (TP Global FX).