ED Seizes ₹6.3 Crore in Real Estate Fraud Money Laundering Probe

The Enforcement Directorate (ED) has seized ₹6.3 crore in cash and jewellery worth ₹7.5 crore following searches against a Delhi-based real estate company accused of defrauding homebuyers and currently undergoing insolvency proceedings, officials said on Saturday.

The action under the Prevention of Money Laundering Act (PMLA) was launched on Friday, and 10 premises of former directors, promoters, and associated entities of the company — Earth Infrastructures Ltd. (EIL) — in Delhi and Gurugram were covered.

The company, according to official records, has been undergoing a corporate insolvency resolution process (CIRP) since June 2018. According to the ED officials, the money laundering case against the former directors and promoters of the company was initiated after taking cognisance of five Delhi Police (Economic Offences Wing) FIRs, apart from a complaint filed by the Serious Fraud Investigation Office (SFIO), the investigation arm of the Ministry of Corporate Affairs.

The ED seized ₹6.3 crore in cash and jewellery valued at ₹7.5 crore, besides some silver bullion and luxury watches during the searches, the officials said.

The group and its associated companies launched multiple real estate projects under the 'Earth' brand across Delhi-NCR and Lucknow. Their major projects include Earth Towne, Earth Sapphire Court, Earth Copia, Earth Techone, Earth Iconic, Earth Titanium, Earth Elacasa, Earth Gracia, and Earth Skygate.

The accused entities collected ₹2,024.45 crore from more than 19,425 homebuyers and investors by promising 'timely' delivery of residential and commercial units along with assured returns, the ED said. However, despite collecting 'huge' advances, projects were either not completed or buyers were not given possession. The funds were diverted for the acquisition of land in Gurugram, Delhi, and Rajasthan or routed to shell companies, the agency claimed.