Krrish Realtech, a prominent Gurugram-based real estate group, is under investigation for allegedly defrauding homebuyers of more than ₹500 crore. According to the Enforcement Directorate (ED), the company collected funds from over 400 customers for residential plots in Delhi NCR but diverted approximately ₹205 crore for a hotel project in Colombo, Sri Lanka.
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The agency claims that money meant for housing developments was funneled through shell companies, including Mahadev Infrastructure, which served as a conduit for transferring funds overseas. Additional sums, the ED alleges, were used to purchase land and properties under the names of front companies and associates linked to the promoters.
A Pattern of Alleged Misuse
The chargesheet filed in July by the ED details a network of dummy directors, shell entities, and offshore accounts. Investigators say that Katyal and his associates not only misappropriated funds but also fabricated documents to mislead both regulators and courts.
According to the ED, Katyal never intended to deliver the promised plots, instead creating fictitious creditors and filing misleading insolvency petitions before the National Company Law Tribunal (NCLT). Investigators further allege that lists of plot buyers submitted to a Supreme Court–appointed committee, led by Justice Gita Mittal, were falsified to tilt proceedings in the promoters’ favor.
Legal Proceedings and Wider Connections
The case is being prosecuted under the Prevention of Money Laundering Act (PMLA). A special court in Gurugram has issued notices to Katyal and his group, while assets linked to the Colombo hotel project and land parcels in Gurugram have been attached.
This is not Katyal’s first encounter with investigators. In 2023, he was arrested in connection with the “land-for-jobs” scam involving RJD chief Lalu Prasad Yadav and his family. The current charges add another layer to a history of alleged financial misconduct spanning multiple jurisdictions.
Impact on Homebuyers and Industry Scrutiny
For homebuyers who invested their savings into promised projects, the allegations represent both financial and emotional loss. Many buyers, particularly in Delhi NCR, are still waiting for delivery of homes or refunds. The ED’s findings suggest that the real estate sector remains vulnerable to systemic fraud, especially in cases where developers use advances for unrelated ventures.
The investigation also highlights the growing role of regulatory bodies in tracking cross-border financial crimes tied to India’s real estate industry. With funds allegedly diverted to foreign luxury projects and assets parked under relatives’ names, the Krrish Realtech case underscores the challenges of balancing investor protection with the complex structures of modern property development.