Gurugram Realty Firm Allegedly Diverted ₹205 Crore from Homebuyers for Colombo Hotel Project: ED
A Gurugram-based real estate firm, Krrish Realtech, and its promoter, Amit Katyal, are accused of diverting ₹205 crore collected from homebuyers to fund a hotel project in Colombo, Sri Lanka. The Enforcement Directorate (ED) has filed a chargesheet in a local PMLA court.
Real Estate FraudMoney LaunderingEdHomebuyersReal EstateReal EstateAug 26, 2025
The ED's investigation reveals that Krrish Realtech collected more than ₹500 crore from over 400 homebuyers, promising them housing plots. However, the company allegedly did not possess the necessary licenses to conduct these transactions, making the entire operation illegal. The money collected was immediately diverted to the personal accounts of Katyal and other shell companies owned by him and his family.
The ED's chargesheet, filed in July, claims that the proceeds of crime were used to purchase properties, land, and flats in the names of various front companies and family members. One of the significant diversions was the ₹205 crore sent to a real estate-cum-hotel project in Colombo through a shell company named Mahadev Infrastructure. This project is now under scrutiny as part of the broader investigation.
Katyal's son, who has taken citizenship of Saint Kitts and Nevis, is reportedly claiming beneficial ownership of the assets located in Sri Lanka. The ED's probe also uncovered that Katyal never intended to hand over the promised plots to the buyers. Instead, he attempted to alienate the undeveloped land by assigning it to multiple investors and creating fictitious creditors to file a prepackaged insolvency petition before the National Company Law Tribunal (NCLT).
The agency also found that the list of plot buyers submitted to the Justice Gita Mittal committee, appointed by the Supreme Court, was falsified to the promoter's advantage. Some of the plot buyers' names were not included in the list, further highlighting the fraudulent nature of the operation.
The ED conducted searches in this case last year and attached several assets, including the realty project in Colombo and lands in sectors 63, 65, and 70 of Gurugram, as well as immovable properties in Delhi. The agency is working closely with the Delhi Police and Gurugram Police Economic Offences Wing (EOW) to ensure a comprehensive investigation and to bring the perpetrators to justice.
This case highlights the need for stringent regulatory measures and oversight in the real estate sector to protect homebuyers from such fraudulent activities. The ED's chargesheet is a significant step in holding the accused accountable and restoring trust in the real estate market.
Frequently Asked Questions
What is the main accusation against Krrish Realtech and Amit Katyal?
Krrish Realtech and its promoter, Amit Katyal, are accused of diverting ₹205 crore collected from homebuyers to fund a hotel project in Colombo, Sri Lanka, without possessing the necessary licenses to conduct these transactions.
How much money did Krrish Realtech collect from homebuyers?
Krrish Realtech collected more than ₹500 crore from over 400 homebuyers, promising them housing plots.
What did the ED find about the use of the collected funds?
The ED found that the collected funds were diverted to personal accounts of Katyal and shell companies, used to purchase properties, and sent to a real estate-cum-hotel project in Colombo through a shell company named Mahadev Infrastructure.
What actions did the ED take in this case?
The ED conducted searches, filed a chargesheet, and attached assets including the realty project in Colombo and lands in Gurugram and Delhi.
What regulatory measures are needed to prevent such frauds?
Stringent regulatory measures and oversight are needed in the real estate sector to protect homebuyers from fraudulent activities, including better licensing processes and regular audits.
Related News Articles
Sunteck Realty Reports Net Profit of Rs 101.33 Crore in Q4 FY24
Sunteck Realty's net consolidated total income stood at Rs 434.99 crore in Q4 FY24
Due Process Must be Followed by Trademark Registrars in Examining Cases
The Mumbai High Court has ordered the Trademark Registry to re-examine a case involving the transfer of ownership of two trademarks, highlighting the importance of following due process in such cases.
Prestige Estates to Launch 43 New Real Estate Projects Across 7 Cities
The company has a total land bank of 260 acres across Bengaluru, Mangaluru, Mysuru, and Pune.
Pune Real Estate Firm Falls Victim to Rs 24 Lakh Cyber Fraud
An employee from the accounts department of a Pune-based real estate firm was tricked into transferring Rs 24 lakh to fraudulent accounts after receiving a message from someone posing as the company director’s father. The incident highlights the increasin
How REITs and Fractional Ownership are Reshaping the Real Estate Market
With minimum investment thresholds ranging from Rs 10-25 lakh, retail investors now have the opportunity to participate in the real estate market with limited capital.
Bombay High Court Allows Adani Electricity to Cut 209 Mangroves for Infrastructure Project
The Bombay High Court has issued a ruling permitting Adani Electricity Mumbai Infra Ltd. (AEMIL) to cut down 209 mangroves near Vasai Creek for a critical infrastructure project.