Homebuyers ‘fraud’ case: ED seizes over Rs 6 crore cash in raids on Delhi real estate firm assets

The Enforcement Directorate (ED) on Saturday said that it has seized cash and valuables worth crores after carrying out searches against a Delhi-based real estate firm facing allegations of cheating homebuyers and already under insolvency proceedings. The action was taken under the Prevention of Money Laundering Act (PMLA) following searches conducted on Friday at 10 premises linked to former directors, promoters and associated entities of Earth Infrastructures Ltd. (EIL), located in Delhi and Gurugram, officials said. As per official records, the company has been undergoing the Corporate Insolvency Resolution Process (CIRP) since June 2018. Officials stated that the money laundering investigation against the company’s former directors and promoters was initiated after taking cognisance of five FIRs registered by the Delhi Police Economic Offences Wing, along with a complaint from the Serious Fraud Investigation Office (SFIO), under the Ministry of Corporate Affairs. During the operation, the ED recovered Rs 6.3 crore in cash and jewellery worth Rs 7.5 crore, along with silver bullion and luxury watches. The agency said the group and its associated entities had developed multiple real estate projects under the ‘Earth’ brand across Delhi-NCR and Lucknow. These included Earth Towne, Earth Sapphire Court, Earth Copia, Earth Techone, Earth Iconic, Earth Titanium, Earth Elacasa, Earth Gracia and Earth Skygate. According to the ED, the accused companies collected Rs 2,024.45 crore from over 19,425 homebuyers and investors on the promise of “timely” delivery of residential and commercial units, as well as assured returns. However, the agency added that despite raising large sums, several projects were either left incomplete or possession was not handed over to buyers. It further alleged that the funds were diverted towards land purchases in Gurugram, Delhi and Rajasthan, or transferred through shell companies.