New Delhi: In a major action in a large-scale homebuyers’ fraud case, the Enforcement Directorate (ED) has carried out extensive raids across Delhi-NCR and seized cash worth around ₹6.3 crore along with jewellery valued at approximately ₹7.5 crore. The action targets real estate company Earth Infrastructures Ltd (EIL), which is under investigation for alleged cheating of thousands of investors and money laundering.
Crores in cash, glittering jewellery and luxury assets have put the alleged realty fraud in sharp focus
According to officials, the raids were launched on Friday and covered nearly 10 premises linked to former directors, promoters, and associated entities of the company in Delhi and Gurugram. During the searches, investigators recovered large amounts of cash, jewellery, silver bullion, and luxury watches, indicating deep financial irregularities.
The case is being probed under the Prevention of Money Laundering Act (PMLA), based on five FIRs registered by the Delhi Police Economic Offences Wing (EOW) and inputs from the Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs.
ED officials stated that Earth Infrastructures Ltd allegedly launched multiple real estate projects across Delhi-NCR and Lucknow and collected large sums of money from investors by promising the timely delivery of residential and commercial units along with assured returns. Some of the major projects under scrutiny include Earth Towne, Earth Sapphire Court, Earth Copia, Earth Techone, Earth Iconic, Earth Titanium, Earth Elacasa, Earth Gracia, and Earth Skygate.
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More than 19,000 homebuyers are caught in a nightmare as incomplete projects and missing funds come under scrutiny
Investigations have revealed that the company and its associated entities collected approximately ₹2,024.45 crore from around 19,425 homebuyers and investors. However, despite collecting such massive funds, several projects remained incomplete, while many buyers were not given possession of their booked properties.
The ED has alleged that a significant portion of the collected funds was misappropriated. According to the agency, the money was diverted into land acquisition, expansion of real estate operations, investments in other regions, and routing through shell companies. In several instances, funds were layered through multiple entities to obscure the financial trail.
The seized assets include ₹6.3 crore in cash, jewellery worth around ₹7.5 crore, silver bars, and high-end luxury watches. Officials said these recoveries are crucial for understanding the money laundering network and tracing further assets linked to the case.
Investigators suspect investor money was layered through shell firms to bury the real financial trail
The matter has also been under the Corporate Insolvency Resolution Process (CIRP) since 2018. However, despite ongoing proceedings, complaints from homebuyers continued to surface, prompting intensified investigation by enforcement agencies.
Officials further stated that the role of promoters and former directors is under detailed scrutiny, with investigators tracing the flow of funds across multiple accounts and entities to determine the full extent of diversion.
The ED has indicated that more assets may be seized in the coming days, and additional raids across multiple locations cannot be ruled out. The agency is currently focused on mapping the complete money trail and identifying all beneficiaries involved in the alleged fraud.
The action has brought renewed hope among affected homebuyers, many of whom have been waiting for possession of their properties for years. At the same time, the case has once again raised serious concerns over investor protection and regulatory oversight in the real estate sector.
