Wanted Hawala operator back on radar of agencies over 200-acre Lucknow property

The Income Tax department has attached a 200-acre property in Lucknow being controlled by Nandkishore Chaturvedi, one of the country's biggest and most wanted Hawala operators. Chaturvedi, who made headlines in 2022 for giving huge loans to the brother-in-law of Shiv Sena (UBT) chief Uddhav Thackeray, has incidentally used to same company for a grant of license for developing the 200-acre integrated township in Lucknow.

Nandkishore Chaturvedi is wanted in multiple cases by the CBI, Enforcement Directorate and Income Tax department. A Look Out Circular was also issued against him.

In 2022, the Enforcement Directorate unearthed that Chaturvedi's shell company, Humsafar Dealers Pvt Ltd, gave unsecured loans to firms owned and controlled by Uddhav Thackeray’s brother-in-law, Shridhar Patankar.

NANDKISHORE CHATURVEDI RESURFACES

Recently, the Benami Prevention Unit of Income Tax Investigation unearthed the case and provisionally attached immovable properties of the 200-acre township being developed by a consortium of companies controlled by Chaturvedi and his associates under the Benami Transactions (Prohibition) Amendment Act, 2016.

Hamsafar Dealers Pvt Ltd is the same company which had given unsecured loans to a firm named Saibaba Grihanirmiti of Shridhar Patankar.

The Enforcement Directorate had attached 11 residential flats in Neelambari Project Thane of the firm Shree Saibaba Grihanirmiti Pvt Ltd in March 2022.

It is suspected that Chaturvedi, who is close to two former chief ministers and some senior politicians, parked their black money in high-yield projects through a network of his shell and paper companies.

INCOME TAX CASE

In the latest case, Chaturvedi used a consortium of eight Benami companies and LLPs (Limited Liability Partnerships) created just for the purpose of acquiring land for the 200-acre township.

Chaturvedi and his associates allegedly utilised a network of eight Benami companies and LLPs to orchestrate the acquisition of land for a massive 200-acre township project. Under the guise of legitimate business activities, Chaturvedi and his associates used True Live Homes Private Limited to secure licenses for the integrated township.

According to sources close to the investigation, the initial investment for this ambitious project was estimated at a staggering Rs 800 crore. However, upon scrutiny by the Income Tax department, discrepancies in financial records and misleading representations came to light.

The investigation revealed that True Live Homes Pvt Ltd acquired over 54 acres of land in villages Madharmau Khurd and Bakkas in Lucknow. These acquisitions were made under the names of associated companies with little to no actual value.

Furthermore, it was found that the consortium led by True Live Homes Pvt Ltd did not meet the minimum eligibility criteria set by the Uttar Pradesh Government for obtaining a township license. Despite the apparent shortfall in turnover and net worth, false information was allegedly presented to the Lucknow Development Authority (LDA) to secure the license.

From analysis of financials submitted with LDA for 2019, the turnover of True Live Homes Pvt Ltd. was reported as Rs 51.93 crore while the same was reported as Rs 64.13 lakh in audited financials reported with the Ministry of Corporate Affairs filings.

However, the final license is yet to be issued to True Live Homes Pvt Ltd by LDA.

The entities involved in the land acquisitions were found to exist only on paper, with no substantial business activities conducted at their registered addresses. These entities were allegedly created solely for the purpose of procuring land parcels for the benefit of Chaturvedi and his associates.

Jitendra Prasad Verma, a director of several LLPs involved in the transactions, claimed ignorance about the source of funds used for purchasing properties. However, it was suggested that these funds originated from Chaturvedi, implicating him further in the scheme.

Meanwhile, Rajat Sahai who is close to Nandkishore Chaturvedi and is one of the interested parties in the proceedings, has challenged the Income Tax action of attaching the 200-acre property through a petition at the Lucknow High Court.