The Enforcement Directorate (ED) is set to file a chargesheet against Ocean Seven Buildtech Pvt. Ltd. (OSBPL), a Gurugram-based real estate company, and its promoter Swaraj Singh Yadav for alleged money laundering and fund diversion of ₹222 crore collected from homebuyers under the Pradhan Mantri Awas Yojana (PMAY).
According to official sources, the company and its managing director are accused of fraudulently diverting funds meant for affordable housing projects through shell companies, resale scams, and illicit cash transactions. The ED is also conducting a valuation of company and promoter assets across states to initiate attachment proceedings under the Prevention of Money Laundering Act (PMLA).
Company MD Arrested, Assets Under Scrutiny
Swaraj Singh Yadav, the managing director and “key person” of OSBPL, was arrested by the ED on November 13 and is currently lodged in judicial custody.
The agency alleged that Yadav diverted the ₹222 crore collected from buyers under PMAY by cancelling original allotments, reselling the same flats at inflated prices, and collecting unaccounted cash premiums from new buyers. Investigators found that proceeds from Escrow accounts were diverted into multiple shell or dummy entities to conceal the origins of the illicit funds.
A senior ED official said the agency discovered “a pattern of accelerated liquidation of personal and company-held assets” by Yadav across Gurugram, Maharashtra, and Rajasthan, apparently to convert illegal gains into easily disposable forms.
Fraudulent Mechanism: Dual Payments for Single Units
The ED uncovered a systematic scheme where flats allotted under PMAY, priced around ₹26.5 lakh, were cancelled on false pretexts, citing “non-payment” by the original buyers. These units were then resold at ₹40–50 lakh, without refunding earlier buyers — effectively generating dual proceeds from the same property.
The agency said Yadav also controlled cash-based transactions, collecting large “premiums” beyond the declared prices. A similar mechanism was found in parking sales, where only token amounts were routed through bank accounts, and the remainder taken in cash.
“This points to deliberate concealment of illicit revenue streams and misuse of escrow funds,” an official familiar with the case said. “We are tracing the entire chain of transactions, including hawala routes used for transferring money abroad.”
Money Transfers and International Links
During the investigation, the ED found that large sums were transferred to the United States via a bank account opened in the name of Yadav’s wife, Sunita Swaraj, allegedly through hawala networks. The agency said Sunita relocated to the U.S. in August 2025 and is currently residing near Harvard University in Boston, while the couple’s son and daughter are enrolled at Trinity College, Connecticut.
Officials said the “accelerated sale and relocation pattern” suggested a clear intent to dissipate assets and evade legal consequences.
Court Proceedings and Custody
Yadav was produced before the Patiala House Courts in Delhi after his arrest. His counsel argued that most of the FIRs cited by the ED had been settled, but the court rejected his plea to quash the arrest.
Additional Sessions Judge Shefali Barnala Tandon granted the ED 14 days of custody on November 14, allowing investigators to further examine financial records and cross-border transfers. After completion of custodial interrogation, Yadav was sent to judicial custody.
No official comment has yet been issued by OSBPL or its representatives regarding the allegations.
ED Prepares Chargesheet and Asset Attachment
The ED is now finalising its prosecution complaint (chargesheet) against Yadav and his associated entities. The agency has initiated procedures for asset valuation and potential attachment, with the goal of recovering diverted funds and ensuring restitution for affected homebuyers.
Officials confirmed that the findings will be shared with other investigative agencies, including the CBI, which had previously examined similar frauds under PMAY. The ED said its investigation covers misuse of escrow funds, forged documentation, and laundering of resale proceeds linked to multiple FIRs filed across Haryana and Delhi-NCR.
Wider Impact on PMAY Integrity
The case underscores the vulnerabilities in the implementation of the Pradhan Mantri Awas Yojana, a flagship housing scheme intended to provide affordable homes to low-income families.
Officials said the ED’s findings indicate how private developers exploited loopholes and regulatory gaps in PMAY to generate black money, undermining the scheme’s social purpose.
“The investigation is part of a larger effort to protect public funds and hold developers accountable,” an ED officer said, adding that more arrests could follow as forensic audits of OSBPL’s financial and real estate transactions progress.
