The probe began with Delhi Police FIRs and an SFIO complaint, with investigators alleging diversion of hundreds of crores collected from buyers across multiple real estate projects.
The Enforcement Directorate has arrested four promoters and directors of Earth Infrastructures Ltd in a money laundering case linked to an alleged Rs 2,004 crore fraud involving thousands of homebuyers and investors. | IANS
The Enforcement Directorate (ED) has arrested four senior officials of Earth Infrastructures Ltd in connection with an alleged fraud involving more than Rs 2,000 crore collected from homebuyers and investors across multiple projects, officials said on Tuesday.
The case centres on allegations that the real estate group raised funds from over 19,425 homebuyers and investors by promising timely possession of residential and commercial units, as well as assured returns, but failed to deliver several projects. Investigators claim a substantial portion of the money was diverted through a network of group entities and related concerns.
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According to the ED, Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta, promoters and directors of Earth Infrastructures Ltd, were arrested on Monday under provisions of the Prevention of Money Laundering Act (PMLA), 2002.
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The four accused were produced before a Special PMLA Court in Delhi, which remanded them to five days of ED custody.
The money laundering probe stems from five FIRs registered by the Economic Offences Wing (EOW) of Delhi Police against Earth Infrastructures, its directors and associated entities under various provisions of the Indian Penal Code.
Apart from the police investigation, the Serious Fraud Investigation Office (SFIO) has also filed a criminal complaint under Section 447 of the Companies Act against the promoters and directors of the Earth Group.
The agency alleged that Earth Group collected around Rs 2,004 crore from buyers and investors across its projects. During the course of the investigation, officials found that nearly Rs 467 crore was allegedly siphoned off through multiple group companies and related entities.
The ED said that despite receiving substantial payments from customers, several projects remained incomplete, and possession of promised units was either delayed indefinitely or never handed over, resulting in significant losses for homebuyers and investors.
Investigators further alleged that part of the proceeds of crime was used to acquire movable and immovable assets through individuals and entities linked to the group’s promoters and directors.
In April this year, the ED conducted searches at several locations linked to the Earth Group across Delhi-NCR as part of the ongoing probe.
The agency said the searches resulted in the seizure of cash worth Rs 6.30 crore and jewellery valued at Rs 8.78 crore. Officials also recovered documents linked to more than 100 immovable properties, whose estimated value exceeds Rs 100 crore.
The investigation is continuing.
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