The Enforcement Directorate (ED) on Tuesday arrested the Supertech chairman and owner, R K Arora, on charges of money laundering, according to official sources. Arora was taken into custody under the criminal sections of the Prevention of Money Laundering Act (PMLA) after an extensive round of questioning at the federal agency's office in New Delhi.  he is expected to appear before a special PMLA court on Wednesday.

 The ED will seek his further remand. then. The money-laundering case against the Supertech group, its directors, and promoters stems from multiple FIRs registered by the police departments in Delhi, Haryana, and Uttar Pradesh.

In April, the ED had already attached assets worth more than Rs 40 crore belonging to the real estate group and its directors.

According to a statement released by the ED in April, the company and its directors were involved in a "criminal conspiracy" to deceive individuals by collecting funds as advance payments for flats in their real estate projects. However, they failed to fulfill their obligations of providing possession of the flats on time, resulting in allegations of defrauding the general public.

During the agency's investigation, it was discovered that Supertech Limited and its group companies had collected funds from homebuyers and obtained project-specific term loans from banks and financial institutions for construction purposes. However, these funds were allegedly misappropriated and diverted for purchasing land in the name of other group companies, which was further pledged as collateral to borrow additional funds from banks and financial institutions.

The Supertech group is also said to have defaulted on its payments to banks and financial institutions, resulting in approximately Rs 1,500 crore of loans turning into non-performing assets (NPAs), as stated by the agency.