11 hours ago
WTC Faridabad promoter Ashish Bhalla proposes refund plan for investors before court
By Abhimanyu Sengupta
At least 2,224 people, who had invested in the now-stalled Faridabad World Trade Centre (WTC) project, have been chosen for a refund with a court agreeing to a 'refund and settlement plan' proposed by WTC Group promoter Ashish Bhalla, who was arrested by the Enforcement Directorate (ED) in March on charges of cheating and money laundering.
On May 22, a Faridabad court – presided over by Judicial Magistrate First Class Anil Kumar – allowed Bhalla to open an escrow account to facilitate settlements to the investors. The court was hearing FIRs lodged on the basis of complaints filed by investors, who have alleged they have not been handed over developed residential plots as promised.
According to the FIR, WTC Faridabad Infrastructure Development Private Limited – of which Bhalla was a promoter – lured buyers into investing in a project at Sector 111-114 in Faridabad, promising residential plot allotments. However, the promoters allegedly orchestrated a criminal conspiracy, failing to complete the project and withholding plot deliveries for over a decade.
On March 6, the ED attached assets worth Rs 2,300 crore, including land in Faridabad, and arrested Bhalla. It alleged that he, among other things, had diverted investor funds.
On April 7, the court permitted Bhalla to submit a 'resolution plan', which he did on April 15. Based on the plan, a six-member committee, chaired by Justice (retd) Rajiv Narain Raina of the Punjab and Haryana High Court, was set up to oversee the refund process. On May 8, investors endorsed Bhalla's plan in the Faridabad court.
The committee met on May 11, 14, and 18, collecting around 200 consent forms from investors. Claims are still being consolidated and submitted to the court.
Since the filing of the FIR last November, of these 2,224 investors, 1,045 have already received the settlement, Bhalla's counsel has informed the court.
Investors who consented to the refund and settlement process, however, maintain skepticism.
'Until we get our money back and the committee directly engages with us, we cannot say whether the step is good,' said A K Verma (50), a government employee.
'On an individual basis, we gave our consent for the process. Till it happens, what can we say? We are waiting to get back our hard-earned money,' said SK Gupta, another investor.
