New Delhi/IBNS: The Enforcement Directorate (ED) has arrested RK Arora, the promoter of real estate group Supertech, in an alleged money laundering case, media reports said. 

He is likely to be produced before a special court on Wednesday, and the central agency will seek his custody.

RK Arora was arrested under the PMLA (Prevention of money laundering) Act after three rounds of questioning.

There are more than 20 FIRs against him in Delhi, Uttar Pradesh, and Haryana based on complaints filed by buyers.

The buyers had alleged that the company and its directors indulged in "criminal conspiracy" to cheat people by collecting funds from prospective buyers as an advance against booked flats in their real estate projects.

However, they failed to adhere to it and give possession of the flats on time, the central agency had said.

The FIRs alleged that the company had "defrauded" the general public, the ED had said.

According to reports, The ED-led investigation revealed that Supertech Ltd and group companies collected money from homebuyers and took project-specific term loans from banks/financial institutions for projects/flats.

However, the funds were diverted to purchase land in the name of other group companies, which were again pledged as collateral to borrow funds, the ED alleged.

The Supertech group had also "defaulted" on its payments to the banks and financial institutions and currently, around Rs. 1,500 crore of such loans have become non-performing assets, the agency had said.