The Enforcement Directorate has seized cash, jewelry and other valuables during raids linked to allegations of fraud against Delhi-based Earth Infrastructures Ltd, a real estate company accused of collecting more than Rs 2,000 crore from homebuyers and investors without delivering the promised projects. Searches were conducted across 10 premises in Delhi and Gurugram under the Prevention of Money Laundering Act, targeting former directors, promoters and associated entities of the company, which has been under insolvency proceedings since June 2018.
Raids Yield Cash, Jewelry and Luxury Items
According to the information provided, investigators recovered Rs 6.30 crore in cash and jewelry worth Rs 7.50 crore during the operation. Silver bullion and luxury watches were also seized.
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The action follows allegations that the company collected large sums from unsuspecting buyers and investors while failing to hand over residential and commercial units as promised. The projects were marketed under the Earth brand across Delhi-NCR and Lucknow.
Probe Rooted in Buyer Complaints and Fraud Allegations
The money laundering investigation was triggered by five First Information Reports registered by the Delhi Police Economic Offences Wing, along with a separate complaint filed by the Serious Fraud Investigation Office. The case centres on claims that Earth Infrastructures Ltd and its associated companies raised Rs 2,024.45 crore from more than 19,425 homebuyers and investors.
The buyers were allegedly promised timely delivery of units and guaranteed returns. Projects named in the report include Earth Towne, Earth Sapphire Court, Earth Copia, Earth Techone, Earth Iconic, Earth Titanium, Earth Elacasa, Earth Gracia and Earth Skygate.
Funds Allegedly Diverted From Project Delivery
Investigators have alleged that, instead of being used to complete the developments, the money collected from buyers was siphoned off and routed into land acquisitions in Gurugram, Delhi and Rajasthan or moved through shell companies. The projects, according to the allegations, were either left incomplete or buyers were denied possession of the units for which they had paid.
The corporate insolvency resolution process against the company has been underway for nearly seven years. The latest searches indicate that investigators are now intensifying scrutiny of the alleged criminal aspects of the case, alongside the long-running insolvency proceedings.
