The ₹2,004 Crore Real Estate Scam: 19,000 Home Buyers Left in Limbo

India's Enforcement Directorate (ED) made key arrests on 1 June, targeting four promoters of a real estate group in connection with a money laundering probe. The probe involves an alleged ₹2,004 crore homebuyer fraud that has affected more than 19,000 buyers and investors.

The arrests come years after many buyers invested their life savings in residential and commercial projects that were either delayed indefinitely or never completed, leaving purchasers in financial distress, facing EMIs, and engaging in lengthy legal battles.

The accused are Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta, who are promoters and directors of Earth Infrastructures Ltd. (EIL).

Earth Infrastructure was once a prominent real estate developer that launched several residential and commercial projects across Delhi-NCR, Greater Noida, and Lucknow. The company attracted a large number of buyers by promising timely delivery of homes and investment returns. However, according to investigating agencies, the company and its associated entities collected substantial amounts from homebuyers and investors for multiple projects. Many of these projects allegedly remained incomplete or were significantly delayed, leaving buyers stranded.

As construction stalled, thousands of purchasers began approaching regulatory authorities, police agencies, consumer forums, and courts. Several projects eventually entered insolvency proceedings after homebuyers sought legal remedies against the developer.

The ED arrested Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta, promoters and directors of Earth Infrastructure Ltd. (EIL), on June 1 under the Prevention of Money Laundering Act (PMLA). A special court in Delhi subsequently granted the agency custody of the accused for further investigation. The money laundering probe stems from multiple FIRs registered by the Economic Offences Wing of Delhi Police as well as proceedings initiated by the Serious Fraud Investigation Office (SFIO). Authorities are investigating allegations that funds were collected from homebuyers and investors across several real estate projects but projects were not delivered as promised.

The group collected approximately ₹2,004 Crore from more than 19,425 homebuyers and investors by promising timely delivery of residential and commercial units and assured returns. Investigation further revealed that approximately ₹467 crore was diverted or siphoned off through various group entities and related concerns or persons. Despite receiving substantial funds from buyers and investors, the projects were either left incomplete or possession of units was not handed over, causing wrongful loss to the homebuyers and investors.

Investigation has further revealed that a part of the Proceeds of Crime generated from the scheduled offences was used for the acquisition of movable and immovable assets in the names of various entities and individuals connected with the Promoters/Directors of the group.

According to the ED, Earth Infrastructure and its associated entities launched several projects, including:

- Earth Towne - Earth Sapphire Court - Earth Copia - Earth Techone - Earth Iconic - Earth Titanium - Earth Elacasa

Many buyers in these projects have been waiting for possession for years. Some projects reportedly witnessed little progress despite substantial collections from customers. The delays forced numerous homebuyers to seek intervention through insolvency proceedings, consumer courts, and other legal forums.

Earlier, the ED conducted searches in April 2026 under the provisions of PMLA at various premises linked to the Earth Group located in Delhi-NCR. According to the agency, investigators recovered:

- Approximately ₹6.3 crore in cash - Jewellery valued at around ₹7.5 crore - Silver bullion - Luxury watches - Documents linked to more than 100 immovable properties

The ED has also stated that some of these properties are suspected to be benami assets, with an estimated value exceeding ₹100 crore.

The ED's investigation is ongoing. Authorities are expected to continue examining financial transactions, company records, asset ownership structures, and the movement of funds linked to Earth Infrastructure and its promoters. If investigators establish that assets were acquired using proceeds of crime, those assets could be attached and become part of future recovery proceedings, subject to court orders.

At the same time, insolvency and other legal proceedings involving various projects may continue independently. For homebuyers, the arrests represent an important step in the investigation, but they do not immediately resolve the larger issue of project completion or compensation.

The Earth Infrastructure case serves as a cautionary example of the risks associated with under-construction real estate projects. Before investing, buyers should carefully examine a developer's track record, project approvals, financial position, regulatory compliance, and ongoing litigation. Checking RERA registrations, construction progress, and insolvency records can help identify warning signs early.