ED Arrests Four Real Estate Promoters in Rs 2,004-Crore Homebuyer Fraud Case
The Enforcement Directorate (ED) has taken significant action against four promoters of a real estate group accused of a Rs 2,004-crore homebuyer fraud and money laundering case. The arrested individuals, Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta, are the promoters and directors of Earth Infrastructures Ltd. They were apprehended on June 1 under the Prevention of Money Laundering Act (PMLA).
The four accused were produced before a special PMLA court in Delhi, which granted the ED five days' custody for interrogation. The investigation has revealed that the group collected around Rs 2,004 crore from more than 19,425 homebuyers and investors, promising timely delivery of residential and commercial units along with assured returns.
However, the ED's probe found that approximately Rs 467 crore had been diverted or siphoned off through various group entities, related concerns, and individuals. Despite receiving substantial funds from the buyers and investors, the projects were either left incomplete or possession of units was not handed over, causing significant financial loss to the homebuyers and investors.
The investigation further revealed that part of the alleged proceeds of crime were used to acquire movable and immovable assets in the names of various entities and individuals linked to the promoters and directors of the group. This includes cash worth approximately Rs 6.30 crore, jewellery valued at around Rs 8.78 crore, and property documents related to more than 100 immovable assets estimated to be worth over Rs 100 crore.
The case stems from five FIRs registered by the Economic Offences Wing (EOW) of Delhi Police against Earth Infrastructures Ltd, its directors, and associated entities under various provisions of the Indian Penal Code. The Serious Fraud Investigation Office (SFIO) has also filed a criminal complaint under Section 447 of the Companies Act against the promoters and directors of the group.
Earlier in April, the ED conducted searches at premises linked to the Earth Group across Delhi-NCR. These raids resulted in the seizure of substantial assets, further solidifying the allegations of financial misappropriation. The actions taken by the ED are a significant step towards ensuring justice for the thousands of affected homebuyers and investors.
This case highlights the importance of stringent regulatory measures and the need for transparency and accountability in the real estate sector. The ongoing investigation is expected to uncover more details and bring to light the extent of the fraud, ensuring that such malpractices are deterred in the future.
