Hyderabad: The Enforcement Directorate’s (ED) supplementary chargesheet in the Special PMLA Court revealed systematic land fraud involving fake cheques, encumbered plots, and benami front companies in the Pride India scam. The ED unearthed major financial irregularities in the Pride India case, exposing a series of deceitful land transactions that caused wrongful gains of over ₹12.5 crore. In its supplementary prosecution complaint filed before the Special PMLA Court, Hyderabad, recently, the ED detailed how the accused used multiple companies to dupe landowners and investors under the guise of real estate development.At the centre of the investigation is Abdul Haleem Baig, managing director of Pride India Avenues Pvt Ltd and Pride India Mansions Pvt Ltd. The ED named Mustafa Kamaal Siddiqui, director of Park Square Properties Pvt Ltd, as a co-conspirator. Both companies — Pride India Mansions and Park Square — were allegedly used to project legitimacy while siphoning funds through fake agreements and dishonoured payments.‘Mansions’ scheme The ED found that Pride India Mansions Pvt Ltd executed a Memorandum of Understanding on 8 March 2017 with S Sudershan Reddy for the relinquishment of rights over 29 acres of land in Bandlaguda village. While ₹17 crore was promised, only ₹2.5 crore was paid. The remaining ₹14.5 crore was supposed to be paid in five instalments through sixteen post-dated cheques—all of which were dishonoured. The ED established that the accused had no intention to honour the agreement, as most of the land was already sold or committed to third parties.The land in question was the subject of multiple layered agreements dating back to 1995. The accused company and its associates falsely claimed ownership and rights, despite court observations noting that they had no legal title. The city civil court, in its order on December 15, 2021, confirmed that the land was already sold by a cooperative society, leaving no legitimate ground for a new sale.‘Avenues’ schemeAnother case involved complainant Mohammed Rafiuddin, who paid ₹3.5 crore to Pride India Avenues Pvt Ltd for plots that were never delivered. The accused allegedly issued cheques drawn on third-party accounts, misrepresented ownership of the land, and refused to refund the amount.To secure the proceeds of crime, the ED issued a Provisional Attachment on 20 March 2025. Immovable properties worth ₹12.5 crore, registered in the name of Pride India Mansions Pvt Ltd, were provisionally attached. These included land parcels with an assessed fair market value of ₹12.8 crore, calculated by a registered govt valuer.Modus operandiAccording to the ED, the accused intermingled the proceeds of crime with routine business expenditure and operations to avoid detection. Investigation revealed that Park Square Properties Pvt Ltd, represented by Siddiqui, incurred no costs in the development but was positioned as a stakeholder only to project credibility. Siddiqui was to receive land as consideration, which never materialised.Two FIRs registered by Central Crime Station, Hyderabad, form the basis of the ED’s investigation. A complaint was lodged by Samreddy Dhananjay Reddy, son of S Sudershan Reddy, alleging cheating to the tune of ₹12.5 crore. The second complaint was filed by Rafiuddin, alleging a ₹3.5 crore fraud.The ED concluded that the offence under Section 420 IPC qualifies as a scheduled offence under the Prevention of Money Laundering Act (PMLA), 2002. The total quantified proceeds of crime stood at ₹12.5 crore, and action under Sections 3 and 4 of the PMLA has been initiated.Both Pride India Mansions Pvt Ltd and Park Square Properties Pvt Ltd were defendants in civil litigation over the same land. The court’s findings further corroborated that the defendants misrepresented facts, concealed prior encumbrances, and misled buyers.
