LUCKNOW: The Uttar Pradesh government has announced plans to revive all pending investigations against Ansal Properties and Infrastructure (Ansal API), including a previously stalled Enforcement Directorate (ED) probe that was inexplicably terminated three years ago.
This move signals a renewed effort to hold the embattled real estate developer accountable for alleged widespread fraud, as the state prepares to strengthen its case before the Supreme Court and the National Company Law Appellate Tribunal (NCLAT).
A Mysterious Pause in the ED Investigation
The ED’s zonal office in Lucknow had been diligently investigating complaints against Ansal API, amassing substantial evidence and filing cases in Lucknow as well as cities across Punjab, Haryana, Delhi, and Rajasthan. However, the probe came to an abrupt halt without any stated justification, leaving many questions unanswered.
State officials are now determined to uncover the reasons behind this sudden suspension and whether any officials played a role in derailing the investigation. The ED has since reopened its cases, with a particular focus on an NRI who reportedly invested Rs 150 crore in Ansal API, alongside a former managing director of the company, an ex-IAS officer, now under scrutiny.
The agency has also reached out to the Lucknow Development Authority (LDA) for comprehensive details on all cases linked to the developer, signaling a thorough re-examination of Ansal API’s operations. This renewed vigor comes amid growing public outcry over the developer’s alleged malpractices, which have left thousands of homebuyers in limbo.
U.P. RERA Steps Up Pressure on Ansal API
The Uttar Pradesh Real Estate Regulatory Authority (U.P. RERA) has intensified its efforts to address Ansal API’s non-compliance, with Chairman Sanjay Bhoosreddy highlighting the developer’s failure to adhere to 1,234 regulatory orders. U.P. RERA has issued 619 recovery certificates totaling over Rs 113 crore to compel Ansal API to compensate affected homebuyers.
Additionally, the authority has imposed 27 further recovery certificates amounting to Rs 19.73 crore for violations of the RERA Act and non-compliance with its directives.
In January 2025, U.P. RERA levied a Rs 14.40 crore penalty on Ansal API across six cases, accusing the developer of illegally registering sale deeds for plots without proper registration with the regulator. These recovery certificates have been forwarded to the Lucknow district magistrate for enforcement, and details have been shared with Navneet Gupta, the insolvency resolution professional appointed by the National Company Law Tribunal (NCLT) following Ansal API’s bankruptcy filing in February 2025.
The LDA, led by Vice Chairman Prathamesh Kumar, plans to contest this bankruptcy plea in the NCLAT, aiming to ensure the developer does not evade its obligations.
A Troubled Township Project Under Scrutiny
Ansal API’s high-tech township project, initially approved in 2005 on 1,765 acres along Sultanpur Road, has been mired in controversy.
The project’s scope expanded over the years, reaching 6,465 acres by 2013, but was later scaled back to 4,689.79 acres in 2021 under a revised state township policy. Despite multiple approvals of detailed project reports (DPRs)—the latest handed over in April 2023—the developer has failed to undertake the promised development work. Complicating matters, 411 acres of the township land remain mortgaged to the LDA.
An FIR filed by the LDA on March 5 at Gomti Nagar police station accuses Ansal API of illegally selling mortgaged land and failing to deliver on development commitments. The township, intended to be completed in three phases, has become a symbol of broken promises, with homebuyers in cities like Lucknow and Gautam Buddh Nagar alleging they were defrauded after paying for plots and flats that were never delivered.
Defence Corridor Land Acquisition Raises Concerns
Adding to the controversy, the state government is now examining land acquired for the Defence Corridor project in Bhatgaon village, Sarojininagar tehsil, during the tenure of former Lucknow district magistrate Abhishek Prakash.
This acquisition has come under the scanner as part of the broader investigation into Ansal API’s dealings, with officials seeking to determine whether irregularities in the process further enabled the developer’s alleged misconduct.
A Broader Push for Justice
The Uttar Pradesh government’s decision to reopen cases against Ansal API reflects a broader commitment to delivering justice to thousands of affected homebuyers, many of whom have waited years for possession of their properties or refunds. By challenging Ansal API’s bankruptcy plea and reviving the ED probe, the state aims to build a watertight case that can withstand legal scrutiny in higher courts.
As the investigation unfolds, the focus remains on ensuring accountability, not only for the developer but also for any officials who may have facilitated its alleged misdeeds. For now, the renewed scrutiny offers a glimmer of hope to investors who have long been caught in a cycle of delays and deception.