ED Cracks Down on Alleged ₹2,004-Crore Real Estate Scam, Four Promoters Arrested
New Delhi: In a major development in one of India’s biggest real estate fraud investigations, the Enforcement Directorate (ED) has arrested four promoters of a real estate group accused of allegedly cheating thousands of homebuyers and investors out of more than ₹2,000 crore.
The arrested individuals — Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta — are associated with Earth Infrastructures Ltd. They were taken into custody as part of an ongoing money laundering investigation under the Prevention of Money Laundering Act (PMLA).
According to the ED, the company collected nearly ₹2,004 crore from more than 19,400 homebuyers and investors by promising timely delivery of residential and commercial properties, along with assured financial returns. However, many projects allegedly remained incomplete, while several buyers never received possession of the properties they had paid for.
Investigators claim that despite receiving substantial funds from customers, a significant portion of the money was allegedly diverted through various group companies, related entities and individuals linked to the promoters.
The agency’s probe has reportedly uncovered evidence suggesting that around ₹467 crore was siphoned off and routed through multiple channels. Authorities further allege that part of the suspected proceeds was used to acquire movable and immovable assets in the names of associates and connected entities.
The money laundering investigation stems from multiple FIRs registered by the Economic Offences Wing (EOW) of Delhi Police against the company, its directors and related entities. The Serious Fraud Investigation Office (SFIO) has also initiated legal proceedings against the group’s promoters and directors under provisions of the Companies Act.
Following their arrest, the four accused were produced before a special PMLA court in Delhi, which granted the ED five days of custody for further questioning and investigation.
The case has once again highlighted the challenges faced by thousands of homebuyers who invest their life savings in housing projects with the hope of owning a home, only to face years of delays and uncertainty. As the investigation progresses, authorities are expected to trace the flow of funds and determine the full extent of the alleged fraud.
For the thousands of affected buyers and investors, the arrests represent a significant step toward accountability in a case that has left many waiting for justice as well as the homes they were promised.
News source: Information for this article was gathered from a variety of reliable news outlets.
