The Enforcement Directorate (ED) has arrested Aashish Jain, director of Chennai-based real estate company Arihant Shelters, in connection with its money-laundering investigation into the large-scale OSR (Open Space Reservation) land scam. The case involves government OSR lands being sold to private buyers using forged documents and later acquired by SIPCOT and the National Highways Authority of India (NHAI) at highly inflated prices.
His arrest follows coordinated searches conducted on November 19 across 15 locations in Chennai, Kanchipuram, and Chengalpattu districts. The searches were part of a PMLA case registered by the ED. Jain will be produced before a magistrate on Tuesday, ED sources said. Arihant Shelters currently has multiple upcoming projects in Ranipet.
During the raids, the ED seized Rs1.56 crore in cash and gold worth Rs74 lakh. Investigators also froze bank balances amounting to Rs8.4 crore and shares valued at Rs7.4 crore under the Prevention of Money Laundering Act.
In a statement issued after the searches, the ED alleged that V. G. S. Rajesh, partner at VGP Investments Ltd., played a key role in cancelling gift deeds of OSR lands and selling them to private individuals just before they were acquired by NHAI for the Bengaluru–Chennai Expressway and by SIPCOT for industrial development.
The ED’s probe found that the so-called purchasers were associates of the original sellers, and that the transactions were deliberately inflated to secure higher compensation during government acquisition. The proceeds of these fraudulent sales were allegedly routed through shell companies before being withdrawn in large amounts of cash, officials said.
