The Enforcement Directorate seized cash and valuables worth ₹13.8 crore following raids on a Delhi-based real estate company accused of defrauding homebuyers and currently undergoing insolvency proceedings, sources said on Saturday.
"The agency conducted raids on a debt-ridden Delhi real estate company and recovered ₹6.30 crore in cash and jewellery worth ₹7.50 crore after allegations that it collected over ₹2,000 crore from unsuspecting buyers and then failed to deliver on its promises,” said an ED official.
The sleuths also seized some silver bullion and luxury watches.
The action under the Prevention of Money Laundering Act (PMLA) began late on Friday, covering 10 premises in Delhi and Gurgaon belonging to former directors, promoters and associated entities of Earth Infrastructures Ltd (EIL).
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 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.
Sources 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.
However, despite collecting “huge” advances, projects were either not completed or buyers were not given possession. Sources said the funds were diverted for land acquisition in Gurgaon, Delhi and Rajasthan or routed to shell companies.
“Investigation has also revealed diversion of proceeds of crime through group entities such as Lavender Infratech Pvt Ltd, Dhurav Real Estate Developers Pvt Ltd, Murlidhar Infracon Pvt Ltd, Banke Bihari Farming Pvt Ltd, Julian Infracon Pvt Ltd and others for acquisition and dissipation of immovable properties,” an ED official said.