The Enforcement Directorate (ED) on Friday launched an extensive raid on the offices and premises of several major real estate developers in Noida, as part of an ongoing investigation into the alleged embezzlement and diversion of ₹1,200 crore—funds collected from homebuyers and investors. The raids are being conducted under provisions of the Prevention of Money Laundering Act (PMLA).
According to sources, 15 locations across Delhi-NCR and Mumbai have been targeted by ED teams. Prominent real estate groups, including Jaypee Group, Gaursons, Gulshan Group, and Suraksha Realty, are under scrutiny for alleged financial mismanagement and diversion of project funds meant for housing developments.
The ED suspects that the developers siphoned off homebuyer advances, meant for project completion, and routed them into unrelated businesses, personal accounts, or shell companies.
Jaypee Sector 128 Office Sealed; Documents and Devices Seized
One of the key locations raided was the marketing office of Jaypee Group in Sector 128, Noida. ED officials reached the site early Friday morning and quickly sealed the main entrance. Employees and visitors were stopped from entering unless explicitly called by the agency. As of now, no formal statement has been issued, but eyewitnesses confirmed that ED officers are examining documents, laptops, and financial records.
Sources reveal that similar operations were conducted at the corporate offices of Gaursons in Noida Extension and Gulshan Group’s headquarters, with focus on ongoing housing projects, escrow accounts, and buyer payment trails.
The core focus of the investigation is to determine whether funds collected from thousands of homebuyers were illegally diverted, delaying projects and denying possession to the rightful buyers. This development comes at a time when Noida’s real estate sector is already under pressure due to project delays, stalled constructions, and growing buyer litigation.
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Wider Implications for Real Estate Sector and Investors
The ED’s multi-city action sends a clear signal to real estate developers operating across NCR and Mumbai. The agency is believed to have acted on inputs from multiple sources, including homebuyer complaints, forensic audits, and data shared by other regulatory authorities such as RERA and SEBI.
In recent years, several developers in the NCR region have faced legal trouble due to project delays, NCLT proceedings, and failure to deliver flats to homebuyers despite collecting large sums in advance.
This probe could have far-reaching implications not only for the four builder groups currently under the scanner, but also for the broader real estate ecosystem in India. Homebuyers and investors are watching the investigation closely, hoping for justice, refunds, or timely possession of their long-delayed flats.
The raids are likely to continue over the coming days, and further seizures, arrests, or legal proceedings are expected as the ED builds its case.