Realty Firm Accused Of Rs 2,024 Crore Fraud Raided, Rs 6 Crore Cash Seized

In a raid in homebuyer fraud case, the Enforcement Directorate (ED) seized items worth Rs 14 crore, including cash and jewellery from a Delhi-based real estate company, Earth Infrastructures Limited (EIL).

On Friday, the Delhi Zonal Office of ED conducted extensive search operations in connection with a money laundering probe against Earth Infrastructures Limited (EIL) and its group entities under the provisions of the Prevention of Money Laundering Act (PMLA). The raid was conducted across 10 premises in Gurugram and Delhi linked to the company's promoters, directors and associates.

During the raids, the ED seized cash worth approximately Rs 6.3 crore, jewellery valued at around Rs 7.5 crore, along with silver bullion and luxury watches.

The money laundering investigation stems from five First Information Reports (FIRs) registered by the Economic Offences Wing (EOW) of Delhi Police against EIL, its directors and related entities on charges of cheating, criminal breach of trust and conspiracy. Additionally, the Serious Fraud Investigation Office (SFIO) has filed a criminal complaint under the Companies Act.

According to the ED, the Earth Group launched multiple real estate projects under the "Earth" brand across Delhi-NCR, Gurugram, Greater Noida and Lucknow, including Earth Towne, Earth Sapphire Court, Earth Copia and others. The agency alleges that the company collected around Rs 2,024.45 crore from over 19,425 homebuyers and investors by promising timely delivery and assured returns. However, several projects were either left incomplete or possession was not handed over.

The probe has revealed that funds collected from buyers were allegedly diverted for acquiring land in Gurugram, Delhi and Rajasthan in the names of group firms and family members, routing money through shell entities, personal land deals, and payments to family members without active business roles. Investigators also found that proceeds were dissipated through sale of properties purchased using diverted funds.

The ED has identified key individuals involved in the case as Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta. The agency also flagged multiple group entities, including Lavender Infratech Private Limited and others, for their role in routing and diverting funds.

Further investigation in the case is currently underway.