The Enforcement Directorate (ED) on Sunday, June 30, conducted extensive raids at 13 locations across Delhi, NCR, and Mohali against Raheja Developers Ltd and its senior executives. The searches were based on multiple FIRs registered by Delhi’s Economic Offences Wing under the Indian Penal Code and the Prevention of Money Laundering Act (PMLA). These actions were triggered by allegations that the realty firm defrauded investors and homebuyers by collecting large sums with false promises of delivering residential flats.
According to the ED’s official statement released Tuesday, the raids led to the recovery of incriminating documents, digital evidence, and records related to both movable and immovable assets. The investigation, still ongoing, focuses on how the funds were diverted and whether they were laundered through benami transactions or shell companies.
False Promises and Vanished Flats: The Anatomy of the Alleged Scam
The FIRs allege that Raheja Developers collected substantial sums from homebuyers for various group housing projects but failed to deliver possession of the promised units. This has led to widespread complaints and litigation by defrauded customers.
One particularly significant case includes the Raheja Shilas Low Rise project in Gurugram, where 43 homebuyers filed a bankruptcy petition with the NCLT Principal Bench in November 2024, seeking recovery of ₹112.9 crore in dues. The ED is examining whether these defaults are part of a larger pattern of misappropriation of investor funds.
Despite the legal chaos, Raheja Developers had announced intentions to go public through an IPO within a year, a move now under a cloud amid ongoing investigations.
Insolvency Battles, Legal Relief, and the Supreme Court’s Precedent
While the insolvency proceedings are gaining momentum, the appellate tribunal NCLAT offered a narrow relief to Raheja Developers by limiting the bankruptcy resolution process to the Shilas project alone. The tribunal has asked the company to furnish status updates and records for other incomplete projects, signaling that wider orders may soon follow.
In a related development, the Supreme Court’s ruling in May 2025 in the Kalyani Transco vs Bhushan Power & Steel Ltd case clarified that neither NCLT nor NCLAT has the authority to review or reverse ED’s provisional attachment orders under PMLA. This judicial precedent could limit Raheja Developers’ legal maneuvering and strengthen ED’s enforcement powers.
What Lies Ahead?
With evidence mounting and investigative agencies closing in, Raheja Developers faces a critical juncture. Regulatory scrutiny, financial liabilities, legal setbacks, and eroded consumer trust pose serious questions about the firm’s future. The case also underscores the need for stronger investor protections and faster redressal mechanisms in India’s real estate sector, which remains plagued by delayed projects and questionable financial practices.