New Delhi | For hundreds of middle- and lower-income families, the promise of owning an affordable home under a government-backed housing scheme has ended in financial distress and prolonged uncertainty. The Enforcement Directorate (ED) has filed a prosecution complaint before a special court in Delhi in connection with an alleged ₹69-crore money laundering case linked to affordable housing projects in Gurugram.
The agency has accused a real estate group’s promoter and associated entities of diverting funds collected from homebuyers under the Pradhan Mantri Awas Yojana (PMAY). According to the complaint, money raised specifically for construction of affordable homes was siphoned off and used to acquire high-value personal assets instead.
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The ED’s findings suggest that the case goes beyond a routine project delay and reflects a structured financial fraud involving layered transactions and shell entities.
Homebuyers Caught Between Promise and Reality
The projects were launched at a time when government housing schemes were widely seen as low-risk and regulated. Buyers were assured lawful allotments, timely completion and regulatory safeguards. Many invested lifetime savings, often supplemented by home loans.
However, years after the launch, not a single housing unit has reportedly been delivered. Several buyers continue to pay both rent and equated monthly instalments, facing mounting financial pressure with no clarity on project completion.
How the Alleged Scheme Operated
According to the investigation, funds collected for construction were diverted through multiple accounts and shell companies to conceal their origin and final use. The agency alleges that genuine allotments made to homebuyers were unlawfully cancelled by falsely portraying them as defaulters, allegedly using forged documents.
The cancelled units were then resold to new buyers at higher prices. Investigators claim that a portion of the sale consideration was received in cash, exceeding legally permissible limits. Instead of being invested back into affordable housing, the diverted funds were allegedly used to purchase villas, hotel and resort properties, land parcels and other high-value assets.
₹69.02 Crore Identified as Proceeds of Crime
The ED has so far identified ₹69.02 crore as proceeds of crime generated through the alleged scheme. The agency has indicated that the amount may increase as the investigation progresses and additional financial trails are examined under the Prevention of Money Laundering Act (PMLA).
Officials involved in the probe maintain that multiple layers of transactions were used to obscure the flow of funds, pointing to a deliberate attempt to launder money collected from homebuyers.
Searches, Seizures and Asset Attachment
Search operations conducted in Delhi and Gurugram in November 2025 led to the seizure of cash, incriminating documents and digital devices. The agency has also provisionally attached movable and immovable assets valued at approximately ₹51.57 crore.
These assets reportedly include residential properties, commercial spaces, land parcels and bank balances spread across multiple states. The attachments are aimed at preventing dissipation of assets allegedly acquired using diverted funds.
Custody and Ongoing Probe
The agency has stated that during the course of the investigation, there were indications of attempts to liquidate domestic assets and move funds overseas. Citing concerns of evasion, custodial action was initiated, and the accused remains in judicial custody.
The investigation is continuing, with authorities seeking to identify additional proceeds of crime and determine the role of other individuals and entities linked to the alleged laundering network.
A Warning for the Affordable Housing Sector
The case is being seen as a cautionary tale for homebuyers and investors in government-linked housing projects. Analysts note that association with a public welfare scheme does not automatically guarantee financial discipline or project safety.
Without strict monitoring of fund utilisation and effective ring-fencing of construction finances, even regulated-looking projects can unravel into large-scale financial crimes.
For affected families, the legal road ahead may be long. However, the filing of the prosecution complaint is being viewed as a critical step toward accountability in a sector where delayed delivery often masks deeper financial misconduct.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
