The Enforcement Directorate (ED) has conducted searches at eight residential and commercial premises across Delhi, Gurugram and Faridabad in connection with an alleged ₹90.5 crore housing society fraud and money laundering case. The raids were carried out as part of an investigation into alleged financial irregularities involving Shanti Niketan Co-operative Group Housing Society Ltd. (CGHS). According to the agency, the searches led to the seizure of cash, gold, silver, digital devices, property-related documents, audited financial records and other incriminating material. Several bank accounts linked to the accused have also been frozen.
The ED said the action was taken under the Prevention of Money Laundering Act (PMLA) based on a First Information Report (FIR) registered at Sushant Lok Police Station in Haryana. The FIR alleges fraud, induction of forged members, misappropriation of society funds and financial irregularities involving office-bearers of the housing society and directors of a private real estate company.
According to the agency, the then president of the society, Mangal Sain Mittal, allegedly conspired with Anil Sharma and Arun Sharma, directors of Connoisseur Infrabuild Pvt. Ltd. (CIPL), to fraudulently gain control of the cooperative housing society. Investigators allege that the accused misappropriated members’ funds, concealed official records, inducted forged members and abandoned the housing project after collecting substantial amounts from homebuyers.
The ED stated that assets worth approximately ₹6.63 crore were seized during the searches. The seizure includes ₹55 lakh in cash, gold bullion valued at around ₹1.85 crore, gold jewellery worth approximately ₹1.95 crore, and nearly 100 kilograms of silver valued at about ₹2.28 crore. Investigators also recovered digital devices, accounting records, audited financial statements and property documents, which are being examined as part of the ongoing probe.
The investigation has further revealed that the cooperative housing society was originally approved for 98 memberships, but the accused allegedly sold 34 additional memberships illegally. The agency claims that flats were marketed at ₹3,500 to ₹4,000 per square foot, with payments collected through a dual-payment mechanism involving both formal banking channels and cash transactions.
According to the ED, investigators have so far traced collections of nearly ₹90.5 crore, including funds received through official bank accounts as well as cash. The agency also alleges that money collected from the society was diverted to business entities controlled by the accused. Analysis of financial records reportedly indicates cash deposits of around ₹12 crore, which investigators suspect were layered through multiple transactions to conceal the origin of the funds.
According to experts at the Future Crime Research Foundation (FCRF), financial crimes involving cooperative housing societies and real estate projects frequently involve forged memberships, manipulation of official records, cash transactions and complex layering of funds to disguise illicit financial flows. They advise prospective homebuyers to independently verify land ownership, statutory approvals, membership records and payment mechanisms before investing in any residential project.
FCRF experts further note that attractive pricing and promises of high returns should not be the sole basis for making investment decisions. Buyers should make all payments through authorised banking channels, preserve official receipts and agreements, and regularly verify the legal and regulatory status of the project to minimise the risk of financial fraud.
The ED is currently conducting a forensic examination of the seized digital devices, financial records and banking transactions to establish the complete money trail. Investigators are also examining the ultimate utilisation of the funds and the possible involvement of additional beneficiaries. Officials believe that the ongoing probe may reveal further details and identify more individuals connected to the alleged ₹90.5 crore housing society fraud.
