Jai Corp shares remained in focus on Wednesday after the Mumbai unit of the Directorate of Enforcement (ED) provisionally attached 88.47 acres of land parcels in Alibaug under the Prevention of Money Laundering Act (PMLA), 2002.
The attached properties have a present market value of ₹336 crore, while the ED said their value linked to the alleged proceeds of crime was ₹230 crore. Jai Corp shares were trading around ₹90.34, while the stock was down about 37% over the previous year.
The investigation relates to the Urban Infrastructure Venture Capital Fund (UIVCF), launched by Jai Corp in 2006-07. The fund had collected ₹2,434 crore from investors, including public sector banks and financial institutions, and invested in various special purpose vehicles (SPVs) involved in real estate projects.
According to the ED, the fund’s tenure was extended beyond the permitted period without SEBI approval. SEBI later wound up the fund and directed that investors receive exits based on valuations conducted by an independent valuer.
The agency alleged that investments in the SPVs were valued at ₹269.20 crore, significantly below their fair value. It further alleged that residual fund units were acquired at lower valuations by five entities linked to Jai Corp promoters.
One of the SPVs, Neelkanth Township and Constructions Private Limited, had received ₹51 crore from UIVCF to acquire an Alibaug land parcel. The ED alleged that the value of the fund’s stake was suppressed and subsequently acquired at an undervalued price.
The attachment is part of the ED’s ongoing investigation and represents allegations by the agency.
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