The Enforcement Directorate’s raids on Ansal API and its top leadership mark a new chapter in one of India’s largest real estate fraud probes, exposing an alleged multi-state scam that defrauded hundreds of homebuyers. With ₹217 crore in properties under the scanner and over 100 FIRs across four states, the scale of deceit is staggering.
Crackdown Across Three Cities: ED Zeroes In on Top Executives
In a coordinated operation on April 30, the Lucknow zonal unit of the Enforcement Directorate (ED) raided five premises associated with Ansal Properties and Infrastructure Limited (Ansal API), a real estate conglomerate once seen as a symbol of aspirational housing in North India.
The searches, conducted under the Prevention of Money Laundering Act (PMLA), 2002, targeted the residences of promoter-director Pranav Ansal, director Deepak Movar, and other senior officials. Corporate offices in Lucknow, Ghaziabad, and New Delhi were also searched. ED officials reported the seizure of incriminating documents, financial records, and digital evidence.
Among the most damning discoveries was a list of 62 immovable properties worth ₹217.80 crore linked to Pranav Ansal, his family, and associated entities, retrieved from a mobile phone found during the raids. The probe is being hailed as a major breakthrough in a sprawling investigation involving over 100 FIRs across Uttar Pradesh, Delhi, Haryana, and Punjab.
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Broken Promises and Missing Homes: ₹135 Crore in Buyer Funds Vanished
The ED’s investigation stems from serious allegations of fraud, criminal breach of trust, and cheating, primarily from homebuyers and investors who allege that their hard-earned money was siphoned off by the company. The FIRs collectively point to fraud exceeding ₹135.51 crore.
“Despite collecting advances and full payments, projects were never completed or handed over,” an ED official said. “Funds were diverted instead of being used for construction or delivery.”
Preliminary findings suggest that a significant portion of buyer money was misappropriated, routed through a web of 174 group companies and subsidiaries, making it difficult for authorities to trace end-use. The ED also seized project-level financials and bank records, which are now under forensic scrutiny.
What adds insult to injury is the repeated non-cooperation by Ansal API’s senior management. ED officials confirmed that multiple summonses were ignored, and the company failed to produce essential financial records, delaying the investigation.
Pattern of Deceit: A Multi-State Real Estate Mirage
This case isn’t an isolated episode it is emblematic of a wider crisis in India’s real estate sector, where buyers are routinely left in limbo, and developers walk free after bleeding projects dry.
For years, Ansal API attracted investment in high-profile projects, from commercial towers in Noida to integrated townships in Lucknow. Promotional material boasted of “world-class living experiences.” But behind the scenes, it appears the projects were used to raise funds, with little intention to complete or deliver them.
As of now, ED investigations are continuing into asset trails, money laundering channels, and the use of proxy companies. Industry observers note that real estate frauds of this nature often thrive in regulatory blind spots—where RERA (Real Estate Regulation Act) enforcement is weak, and buyers lack legal recourse.
The stakes are high. Not only are families awaiting possession of homes that may never materialize, but the financial web of deceit has entangled hundreds of crores, jeopardizing investor trust across the realty sector.