New Delhi, Nov 20 (PTI) The Enforcement Directorate has conducted searches at 15 locations in Chennai, Kancheepuram and Chengalpattu in connection with its probe into alleged large-scale fraud relating to land acquisitions in Tamil Nadu.

The ED, citing police FIRs, said lands originally provided by entities of the VGP Group in 1991 for roads and parks were subsequently reclaimed through "forged and fabricated" documents and then sold to private persons shortly before acquisition by the NHAI and the State Industries Promotion Corporation of Tamil Nadu (SIPCOT).

During the raids, Rs 18.10 crore assets were also seized, the federal agency said in a statement.

The ED's Chennai zonal office initiated the investigation on the basis of FIRs registered by police at Sriperumbudur and Kancheepuram in 2021 and 2022 "for offences related to forgery, cheating, criminal conspiracy and fraudulent receipt of compensation", the statement said.

The Madras High Court in proceedings related to these matters had also observed that various people had fraudulently claimed ownership of lands before acquisition resulting in severe loss to the public exchequer.

The ED investigation found that "forged/fake/bogus documents" were used to cancel the deeds registered in favour of public authorities just before the acquisition by the NHAI and SIPCOT.

These alleged fraudulent cancellations enabled the sale of lands that were originally meant for public purposes. The miscreants did not stop there and even went ahead by selling the lands obtained fraudulently to their own associates, the ED said.

The purchasers (associated persons of the sellers) showed high purchase considerations just to claim higher rate of compensations, it said.

Based on these "inflated valuations", the purchasers allegedly "secured exorbitant compensation" during acquisition by the NHAI for the Bangalore-Chennai Expressway and by SIPCOT for industrial expansion.

The ED investigation further revealed that a well-structured modus operandi was developed by key individuals and associated public servants.

The scheme involved unlawful cancellation of deeds, resale of public utility lands through controlled/dummy buyers, artificial enhancement of market value in registration documents, and obtaining inflated compensation from government acquisition authorities, the agency said.

"After receipt of the compensation, the proceeds were layered through multiple bank accounts of associates, relatives and shell entities linked with the key persons. In multiple instances, large cash withdrawals amounting to several crores were found to have been made after layering of the Proceeds of Crime so as to conceal the origin of funds," the ED said in its statement.

During the searches, various incriminating documents and digital evidence related to forged land records, inflated valuation of lands, layering of compensation amounts and internal communications among the conspirators were recovered and seized.

The ED had earlier examined voluminous bank account statements and recorded testimonies, identifying a network of individuals and entities used to circulate and disguise the proceeds of crime.

These findings have now been corroborated through evidences and materials recovered during the search operations.

During the search, Rs 1.56 crore cash and bullion worth Rs 74 lakh have been seized. Further bank balances amounting to Rs 8.4 crore and shares valuing Rs 7.4 crore are freezed. The total seized/ freezed assets are worth Rs 18.10 crore, the ED said. PTI NES ACB ACB KVK KVK