The Enforcement Directorate has arrested four promoters of a real estate group in connection with a money laundering probe into an alleged Rs 2,004-crore homebuyer fraud that affected more than 19,000 buyers and investors.
The accused, identified as Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta, are promoters and directors of Earth Infrastructures Ltd. An official statement said they were arrested on June 1 under the Prevention of Money Laundering Act and produced before a special PMLA court in Delhi, which granted the agency five days’ custody for interrogation.
ED Arrests Four Earth Group Promoters
According to the agency, the group collected around Rs 2,004 crore from more than 19,425 homebuyers and investors by promising timely delivery of residential and commercial units, along with assured returns.
The ED alleged that its probe found approximately Rs 467 crore had been diverted or siphoned off through various group entities, related concerns and individuals.
Projects Left Incomplete, Buyers Hit
The agency said that despite receiving substantial funds from buyers and investors, the projects were either left incomplete or possession of units was not handed over, causing wrongful loss to homebuyers and investors.
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The probe further revealed that part of the alleged proceeds of crime was used to acquire movable and immovable assets in the names of various entities and individuals connected with the promoters and directors of the group.
Probe Began After EOW FIRs
The investigation was initiated on the basis of five FIRs registered by the Economic Offences Wing of Delhi Police against Earth Infrastructures Ltd, its directors and related entities under various provisions of the Indian Penal Code.
The Serious Fraud Investigation Office has also filed a criminal complaint under Section 447 of the Companies Act against the promoters and directors of the group.
Earlier in April, the ED conducted searches at premises linked to the Earth Group across Delhi-NCR. During the raids, the agency seized cash worth about Rs 6.30 crore, jewellery valued at around Rs 8.78 crore and property documents relating to more than 100 immovable properties estimated to be worth over Rs 100 crore.
