Nagpur, October 31, 2026: The Directorate of Enforcement (ED), Nagpur, has conducted search operations at two locations in Nagpur district linked to builder Shashank Govindprasad Pandey, proprietor of Prayag Developers & Builders, in connection with an alleged money laundering case.The searches, conducted on October 26 under the Prevention of Money Laundering Act (PMLA), 2002, resulted in the seizure of unaccounted cash worth ₹1.95 crore, incriminating documents and digital devices. The ED also froze bank balances exceeding ₹40 lakh and identified several immovable properties suspected to have been acquired using proceeds of crime.
Alleged ₹9.4 Crore Fraud Against Senior Citizen
According to the ED investigation, Pandey allegedly entered into a development agreement with a senior citizen widow, promising ₹1.75 crore and 14 residential flats in exchange for development rights over her land.
The investigation alleges that flats earmarked for her were fraudulently sold to third parties after cancellation of the relevant declaration deed without her knowledge or consent. The sale proceeds of ₹8.93 crore were allegedly misappropriated, while another ₹45 lakh remained unpaid, causing an alleged total loss of ₹9.4 crore.
22 Mortgaged Flats Allegedly Sold
In another case involving Divya Prayag Apartment, the ED found that 22 flats had been mortgaged to Dewan Housing Finance Corporation Limited (DHFL) against a ₹22 crore project loan, of which ₹11 crore was disbursed.
Pandey allegedly sold these flats without obtaining the lender’s No Objection Certificate (NOC) or informing buyers about the existing mortgage. He is also accused of submitting a false affidavit to a bank while concealing the mortgage.
The outstanding dues reportedly reached ₹12.84 crore, following which proceedings under the SARFAESI Act were initiated.
The ED investigation originated from FIRs registered at Ajni and Ranapratapnagar Police Stations in Nagpur under Sections 418 and 420 of the Indian Penal Code, 1860.
Further investigation is underway. The allegations are subject to the outcome of the legal proceedings.
