ED Arrests Real Estate Firm MD in Major Money Laundering Case

The Enforcement Directorate (ED) has made a significant arrest in a major money laundering case involving the real estate sector. On November 15, the ED arrested Swaraj Singh Yadav, the Managing Director of Ocean Seven Buildtech Pvt. Ltd. (OSBPL), following searches conducted at nine locations across Delhi-NCR and other regions. The action is part of a probe under the Prevention of Money Laundering Act (PMLA), 2002.

The searches, which took place on Thursday, led to the recovery of Rs 86 lakh in cash, suspected to be proceeds of crime, along with incriminating documents and digital evidence. According to the ED, Yadav is accused of diverting and laundering funds collected from homebuyers across multiple projects, including those under the Pradhan Mantri Awas Yojana (PMAY).

Yadav is alleged to have orchestrated a large-scale diversion of homebuyer funds through various fraudulent means. These include the cancellation and resale of units at inflated prices, cash-based premiums collected outside banking channels, and the misuse of escrow accounts. The ED also found that substantial sums were routed into shell entities and concealed with relatives.

Investigators uncovered a pattern of rapid liquidation of assets held personally and through company entities in Gurugram, Maharashtra, and Rajasthan. This, the agency believes, was intended to secure illicit gains and evade legal scrutiny. The probe revealed that Yadav's wife and children have already relocated to the United States.

The ED's investigation further revealed that Yadav operated a dual-payment mechanism in the resale of PMAY flats and even in the sale of parking spaces. He routed only nominal amounts through banks while collecting the bulk in cash. These activities are part of a wider probe linked to multiple FIRs alleging cheating, forgery, and other predicate offences.

Following his arrest, Yadav was produced before the Court of ASJ-06 at Patiala House Courts on Friday, in compliance with Supreme Court directions. After detailed submissions from both sides and a pass-over granted to allow him legal assistance, the court sent him to ED custody for 14 days, until November 28. The agency has been directed to produce him before the court at 2 p.m. on the date of expiry of remand.

The ED is pursuing further investigation to trace, freeze, and attach assets acquired from the laundered funds, to ensure recovery and restitution to affected homebuyers. This case underscores the agency's commitment to rooting out financial crimes and protecting the interests of innocent citizens.

Ocean Seven Buildtech Pvt. Ltd. (OSBPL) is a real estate firm known for its projects in various parts of India. The firm has been involved in several high-profile projects, including those under the Pradhan Mantri Awas Yojana (PMAY), which aims to provide affordable housing to all by 2022. The arrest of its MD is a significant development in the ongoing efforts to combat financial irregularities in the real estate sector.