Gurugram | The Directorate of Enforcement (ED), Gurugram Zonal Office, has carried out extensive search operations under the Prevention of Money Laundering Act (PMLA), 2002, against the Piyush Group of Companies and its former management in connection with an alleged real estate fraud involving diversion of homebuyers’ funds. The action relates to projects spread across Haryana and Rajasthan.
According to the ED, searches were conducted at premises linked to erstwhile promoters, present resolution professionals, company directors and individuals associated with a joint venture. Investigators suspect that a commercial project was developed using funds allegedly diverted from homebuyers of other group projects.
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Action based on multiple FIRs
The enforcement action follows several FIRs registered by different investigating agencies, including the Economic Offences Wing (EOW) and the Central Bureau of Investigation (CBI). The cases include allegations of cheating, criminal breach of trust, forgery, criminal conspiracy and corruption.
As per the complaints, investors and homebuyers were induced to invest in residential and commercial projects with assurances of fixed returns and timely delivery of possession. Despite collecting substantial booking amounts over several years, many of the projects remained incomplete. Possession was allegedly not handed over even after prolonged delays, and refunds were not provided.
The FIRs also allege fabrication and forgery of project-related documents, allotment of the same housing unit to multiple buyers, and sale of mortgaged land without obtaining mandatory consent from banks and financial institutions.
Projects under insolvency proceedings
The ED said two key group companies are currently undergoing Corporate Insolvency Resolution Process (CIRP) in respect of stalled projects located in Palwal, Faridabad, Bhiwadi, Dharuhera and other areas. During insolvency proceedings, forensic audits reportedly indicated large-scale diversion and misuse of funds collected from homebuyers.
Preliminary findings during the searches suggest that the group collected more than ₹600 crore between 2010 and 2018 through various projects. Investigating agencies estimate that over 2,000 homebuyers and investors were affected by the alleged fraud.
Physical inspection of several project sites revealed that construction work had either stalled several years ago or was less than 50% complete, despite substantial funds having been collected from buyers.
Background of the group
The Piyush Group was engaged in residential and commercial real estate development across Haryana and Rajasthan. It launched multiple projects in Palwal, Faridabad, Bhiwadi, Dharuhera and adjoining regions. Over time, mounting delays, defaults and complaints from homebuyers and lenders led to insolvency proceedings against key group entities.
Investigators said forensic audit reports prepared during CIRP raised serious concerns about fund diversion, suggesting that money collected for specific projects may have been routed to unrelated ventures or other assets instead of being used for construction.
Seizures during searches
The ED stated that the search operations resulted in the seizure of incriminating material, including property-related documents, books of accounts and digital devices. In addition, cash, jewellery and bank balances collectively valued at more than ₹5 crore were seized.
The agency said the seized material would be analysed to trace the movement of funds, establish the money trail and identify proceeds of crime under the PMLA framework.
Further investigation underway
The ED said further investigation is in progress, including detailed analysis of financial transactions, forensic examination of digital evidence and coordination with other investigating agencies.
The case is being seen as part of a broader crackdown on real estate fraud involving diversion of homebuyers’ funds, particularly in stalled housing projects across the National Capital Region and adjoining areas.
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.
