Yesterday, Delhi court sent the chairman and promoter of real estate major Supertech Group, R K Arora, to judicial custody till July 24 in a money laundering case.

The bench of Special Judge Devender Kumar Jangala sent Arora to jail after he was produced before the court by the Enforcement Directorate on the expiry of his 12-day custody.

During the proceedings, the agency submits that it did not require his further custody.

Enforcement Directorate Prosecutor N K Matta, submits that the said case against the Supertech group and its directors and promoters stems from a clutch of FIRs registered by police in Delhi, Haryana and Uttar Pradesh.

The ED has been probing the matter related to 26 FIRs registered by the Economic Offences Wing (EOW) of Delhi, Haryana and Uttar Pradesh police against Supertech Ltd. and its group companies for criminal conspiracy, cheating, criminal breach of trust and forgery.

They have been accused of defrauding at least 670 home buyers of Rs 164 crore.

According to the ED, the company and its directors hatched a “criminal conspiracy” to cheat people by collecting funds from prospective home buyers as advance against flats booked in their real estate projects.

The company did not adhere to the agreed obligation of providing possession of the flats on time and “defrauded” the general public, the agency said.

The ED claimed its probe revealed the funds were collected by Supertech Limited and other group companies from home buyers.

The company also took project-specific term loans from banks and financial institutions for the purpose of construction of housing projects, the ED said.

However, these funds were “misappropriated and diverted” for buying land in the name of other group companies which were pledged as collateral to borrow funds from banks and financial institutions, it added.

The Supertech group also defaulted on payments to the banks and financial institutions, and currently around Rs 1,500 crore of such loans have become non-performing assets (NPA), the agency said.