PMAY Fraud: How a Realtor Allegedly Made Lakhs on Every Flat

The Enforcement Directorate (ED) is preparing to file a chargesheet against Gurugram-based Ocean Seven Buildtech (OSBPL) and its promoters in a money-laundering case linked to alleged irregularities under the Pradhan Mantri Awas Yojana (PMAY), according to official sources.

PMAY, the Union government’s flagship affordable housing scheme, is intended to support economically weaker sections in securing a home. Investigators allege that OSBPL’s operations subverted this objective.

Alleged Cancellation–Resale Cycle

According to the ED, OSBPL managing director Swaraj Singh Yadav, arrested on November 13, ran a scheme in which flats allotted under PMAY were cancelled on “false pretexts” and then re-sold at significantly higher prices. A PMAY flat priced at ₹26.5 lakh was allegedly resold for ₹40–50 lakh.

Earlier payments made by original allottees were allegedly not refunded, allowing the company to collect dual proceeds on the same unit. Investigators claim that this structure enabled the promoter to earn a premium of several lakh rupees per flat, particularly on resale transactions that included cash components.

Cash Premiums and Shell Entities

The ED has alleged that Yadav diverted and laundered ₹222 crore collected from homebuyers through: - Resale of PMAY units at inflated prices, - Cash-based premium collections over and above recorded payments, - Diversion of escrow funds into “shell” or dummy companies.

A similar cash-heavy system was allegedly used in the sale of parking spaces, where only nominal amounts were routed through the company’s bank accounts.

Asset Liquidation and Overseas Transfers

Investigators told the court that they found a “pattern of accelerated liquidation” of personal and company-held assets across Gurugram, Maharashtra, and Rajasthan, allegedly aimed at dissipating assets and evading enforcement action. The ED also stated that Yadav’s wife relocated to the United States in August 2025 and was found residing at Harvard University in Boston, while his children were studying in Connecticut. Funds were allegedly routed abroad through hawala channels using a bank account in her name.

The agency is currently valuing the group’s assets for possible attachment under the Prevention of Money Laundering Act (PMLA), with the aim of restitution to affected homebuyers.

Legal Proceedings Underway

Yadav’s legal team has argued before a Delhi court that most FIRs forming the basis of the ED’s case have been “settled.” However, the court rejected his plea challenging the arrest and granted the agency 14 days of custody on November 14. He was subsequently placed in judicial custody. A formal chargesheet is expected soon. Ocean Seven Buildtech has not yet responded to the allegations made by the agency.