In a major crackdown on real estate fraud, the Enforcement Directorate (ED) officials in Gurugram arrested Ashish Bhalla, the promoter of the World Trade Centers (WTC) Group, on Friday under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Bhalla was taken into custody for his alleged involvement in orchestrating a large-scale real estate fraud that reportedly duped thousands of investors through what investigators have termed a “well-planned conspiracy.”
Investigation into WTC Group and Promoters
The Enforcement Directorate had initiated an in-depth probe against WTC Group and its key promoters, including Ashish Bhalla, Suparna Bhalla, and Abhijeet Bhalla, as well as Bhutani Infra and several other associated entities. The investigation stemmed from multiple allegations of cheating, criminal breach of trust, and financial misappropriation that left hundreds of homebuyers and investors defrauded.
According to sources within the Enforcement Directorate, the investigation uncovered that investors were lured into schemes with the promise of assured returns in exchange for investments in plots and commercial spaces. However, rather than utilizing the funds as promised, the money was allegedly siphoned off and diverted into various shell companies. These fraudulent transactions were primarily aimed at acquiring land across multiple locations, further complicating the financial trail.
Diversion of Funds to Foreign Entities
The investigation also revealed that a substantial portion of the funds, amounting to hundreds of crores, had been illicitly transferred to suspicious entities based in Singapore. The beneficial ownership of these offshore entities was reportedly linked to family members of Ashish Bhalla, raising serious concerns regarding the laundering of money across international borders.
The scale of the fraudulent operations was staggering. The ED’s findings indicated that the WTC Group had collectively raised more than ₹3,000 crore from investors spanning multiple states, including Haryana, Uttar Pradesh, Chandigarh, Ahmedabad, and Punjab. These investors, who had placed their trust in the company’s promises of lucrative returns, now find themselves entangled in a major financial debacle
Earlier, in its pursuit of justice, the Enforcement Directorate conducted extensive search operations under Section 17 of the PMLA on February 27, 2025. However, during these raids, Ashish Bhalla evaded authorities, deliberately absconding to escape legal consequences.
The agency reported that Bhalla not only remained in hiding but also actively influenced key individuals involved in the investigation, dissuading them from cooperating with law enforcement. His deliberate attempts to obstruct justice and hinder the ongoing investigation further solidified the case against him.
Mastermind Behind the Scheme
Authorities believe that Ashish Bhalla was not merely a participant in the fraudulent activities but rather the mastermind behind the entire scheme. The ED’s probe established that he was a primary beneficiary of the illicitly gained funds and played a pivotal role in designing the financial deception that led to massive losses for investors.
According to sources, Bhalla employed a network of shell companies, offshore accounts, and complex financial structures to conceal the illicit transactions and ensure that the defrauded funds remained outside the reach of Indian law enforcement agencies.
Following an intense manhunt and surveillance efforts, the Enforcement Directorate finally arrested Ashish Bhalla on March 6, 2025, under Section 19 of the PMLA, 2002. His custodial interrogation was deemed necessary to uncover the full extent of the fraud, trace missing funds, and identify other accomplices who may have played a role in the operation.
A special court in Gurugram reviewed the ED’s case and subsequently granted six days of custody for Bhalla’s interrogation. During this period, ED officials will question him extensively to gather further evidence and unearth additional details regarding the fraudulent financial transactions.
The arrest marks a significant development in the crackdown on large-scale real estate frauds, reinforcing the ED’s commitment to investigating and penalizing financial crimes that have widespread implications on investors and the real estate sector. As the investigation progresses, authorities are expected to expand their probe to include additional suspects and foreign entities involved in the money laundering network.