ED Seizes Rs 13.8 Crore in Raids on Earth Infrastructures Ltd for Fraud
NEW DELHI: The Enforcement Directorate (ED) has conducted raids on a debt-ridden Delhi real estate company, Earth Infrastructures Ltd (EIL), and seized cash and valuables worth Rs 13.8 crore. The company is accused of defrauding homebuyers and is currently undergoing insolvency proceedings.
The agency conducted raids and recovered Rs 6.30 crore in cash and jewellery worth Rs 7.50 crore. According to an ED official, the company collected over Rs 2,000 crore from unsuspecting buyers and failed to deliver on its promises. The action was taken under the Prevention of Money Laundering Act (PMLA).
Sleuths seized Rs 6.3 crore in cash, jewellery valued at Rs 7.5 crore, silver bullion, and luxury watches as part of a major money laundering investigation. The raids were conducted late on Friday, covering ten premises of former directors, promoters, and associated entities of Earth Infrastructures Ltd in Delhi and Gurugram.
The probe stems from five FIRs registered by the Delhi Police’s Economic Offences Wing against EIL and its directors for alleged cheating, criminal breach of trust, and criminal conspiracy. A criminal complaint filed by the Serious Fraud Investigation Office (SFIO) under Section 447 of the Companies Act further underscores allegations of large-scale fraud. The company has been undergoing a corporate insolvency resolution process (CIRP) since June 2018.
Earth Infrastructures Ltd and its associated companies launched multiple real estate projects under the ‘Earth’ brand across Delhi-NCR 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 accused entities collected Rs 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 Enforcement Directorate’s action is a significant step in ensuring justice for the homebuyers who have been defrauded by the company. The seized assets will be scrutinized to trace the flow of illicit funds and to ensure that the defrauded homebuyers receive some form of compensation.
