ED Raids Delhi Realty Firm for Alleged Fraud of ₹2024.45 Crore

The Enforcement Directorate (ED) has carried out searches at a Delhi-based real estate firm, Earth Infrastructures Limited (EIL), which is accused of collecting ₹2024.45 crore from more than 19,425 homebuyers or investors. The firm promised timely delivery of residential or commercial units along with assured returns but failed to deliver, according to agency officials.

During the searches, conducted on Friday at ten locations in Delhi and Gurugram linked to the promoters and associated entities of EIL, the federal financial crimes probe agency recovered ₹6.3 crore in cash, jewellery valued at around ₹7.5 crore, silver bullion, and luxury watches.

ED’s money laundering probe against EIL and its group entities stems from five FIRs registered by the Economic Offences Wing (EOW), Delhi Police, against Earth Infrastructures Ltd., its directors, and related entities under various sections of the Indian Penal Code for cheating, criminal breach of trust, and conspiracy. Additionally, the Serious Fraud Investigation Office (SFIO) has filed a criminal complaint under section 447 of the Companies Act against the promoters/directors of the Earth Group.

ED investigation has revealed that the Earth Group, through Earth Infrastructures Ltd. and its associated companies, launched multiple real estate projects under the ‘Earth’ brand across Delhi-NCR, Gurugram, Greater Noida, and Lucknow. Major projects include Earth Towne, Earth Sapphire Court, Earth Copia, Earth Techone, Earth Iconic, Earth Titanium, Earth Elacasa, Earth Gracia, and Earth Skygate.

The investigation found that the accused entities collected approximately ₹2024.45 crore from more than 19,425 homebuyers/investors by promising timely delivery of residential or commercial units along with assured returns. However, despite collecting huge advances from buyers, the projects were either not completed or possession was not handed over to the investors.

The agency has discovered that the diverted funds were utilized for acquiring land parcels in Gurugram, Delhi, and Rajasthan in the name of group companies and family members; routing funds through shell/group entities; personal land deals; advances to unrelated entities; salaries to family members without active business roles; and dissipation of proceeds through the sale of properties acquired from diverted funds.

The main persons involved in the fraud, according to the agency, include Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta. Investigation has also revealed the diversion of proceeds of crime through group entities such as Lavender Infratech Pvt Ltd, Dhurav Real Estate Developers Pvt Ltd, Murlidhar Infracon Pvt Ltd, Banke Bihari Farming Pvt Ltd, and Julian Infracon Pvt Ltd for the acquisition and dissipation of immovable properties.