ED gets 14-day custody of builder in Rs 222-crore PMLA case

A Delhi court has granted the Enforcement Directorate (ED) fourteen days of custodial remand of a builder in a money laundering case linked to an alleged Rs 222 crore fraud.

The ED sought remand for Swaraj Singh Yadav, the promoter of Ocean Seven Buildtech Pvt. Ltd. (OSBPL), arguing that he was the “central figure” in a scam that duped thousands of homebuyers across India. The agency told the court that custodial interrogation was necessary to trace the proceeds of crime, uncover the complete modus operandi, and identify other accomplices.

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The ED initiated PMLA investigation based on multiple FIRs registered by the Delhi police for cheating and criminal conspiracy.

The ED alleges that Yadav and his company illegally diverted homebuyers’ money, which was deposited into escrow accounts for affordable housing projects under the PMAY scheme in Gurugram.

The agency’s investigation revealed a modus operandi where PMAY flats, originally priced at Rs 26.5 lakh, were fraudulently cancelled and then resold at a premium of Rs 40-50 lakh. The premium amount was allegedly collected in cash at Yadav’s instruction.

Funds were reportedly layered through associated entities and used to acquire personal assets in India and abroad, including via hawala transfers to a Bank of Baroda account in his wife’s name.

The ED claimed that Yadav was a flight risk because his wife had moved to the USA and his children were studying there. They also showed evidence that he was quickly selling off his assets. This included 86 lakh rupees in cash that was found with his brother-in-law.

The ED said that they need to question him while in custody to confront him with other evidence, check his digital devices, and map out the entire money laundering network.

The court, after a late-night hearing at the judge’s residence, found that all statutory procedures for the arrest were complied with and granted the ED custody of Yadav until November 28.