ED Scrutinizes Krrish Realtech: ₹205 Crore Homebuyer Funds Diverted to Luxury Hotel in Colombo
The Enforcement Directorate (ED) has intensified its investigation into Krrish Realtech, a prominent real estate group in Gurugram, and its promoter Amit Katyal, alleging the diversion of ₹205 crore from homebuyers to a luxury hotel project in Colombo, Sri Lanka.
Real EstateFraudEdLuxury HotelColomboReal EstateAug 28, 2025
According to the ED’s charges, Krrish Realtech collected more than ₹500 crore from over 400 prospective plot buyers without possessing valid development licenses. The agency claims that these funds were never intended for housing projects and were instead funneled through a web of shell companies controlled by Katyal and his family. The ED stated that dummy directors were appointed in paper entities that acted as conduits to divert proceeds of crime. Substantial portions of the money were used to acquire properties in Delhi, Gurugram, and Colombo. Among these, the alleged diversion of ₹205 crore to a real estate-cum-hotel project in Sri Lanka has become a central focus of the investigation.
Katyal’s son, now a citizen of Saint Kitts and Nevis, has reportedly claimed beneficial ownership of assets in Sri Lanka, complicating the recovery process. The probe also points to properties purchased through front companies such as Good Earth Pvt. Ltd. and The One Transworks Square Pvt. Ltd.
The money laundering case originates from First Information Reports (FIRs) lodged by the Delhi Police and the Gurugram Police’s Economic Offences Wing. The ED has attached multiple properties, including undeveloped land parcels in Gurugram’s upscale sectors 63, 65, and 70, estimated to be worth around ₹2,000 crore at current market value. Court records reveal a series of maneuvers allegedly employed by the promoters to evade accountability. These include attempts to alienate land from genuine buyers by creating fictitious creditors and filing a prepackaged insolvency petition before the National Company Law Tribunal (NCLT). The Supreme Court-appointed Justice Gita Mittal committee, which is overseeing claims of affected homebuyers, was also reportedly presented with falsified buyer lists by the company, according to the ED.
Katyal, already facing trial in a separate money laundering case linked to the alleged railways land-for-jobs scam involving RJD chief Lalu Prasad and his family, now faces mounting legal challenges in the real estate fraud case. For hundreds of homebuyers still awaiting justice, the outcome of the ED’s probe will be critical in determining whether their long-stalled investments can be salvaged.
Frequently Asked Questions
What is the main allegation against Krrish Realtech?
The main allegation against Krrish Realtech is that over ₹205 crore collected from homebuyers was siphoned into a luxury hotel project in Colombo, Sri Lanka.
How much money did Krrish Realtech allegedly collect from homebuyers?
Krrish Realtech allegedly collected more than ₹500 crore from over 400 prospective plot buyers.
Who is the promoter of Krrish Realtech?
The promoter of Krrish Realtech is Amit Katyal.
What role did dummy directors play in the fraud?
Dummy directors were appointed in paper entities that acted as conduits to divert proceeds of crime through a web of shell companies controlled by Amit Katyal and his family.
What is the estimated value of the properties attached by the ED?
The estimated value of the properties attached by the ED, including undeveloped land parcels in Gurugram’s upscale sectors, is around ₹2,000 crore at current market value.
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