New Delhi, Apr 11 (PTI) The Enforcement Directorate (ED) has seized Rs 6.3 crore in cash and jewellery worth Rs 7.5 crore following searches against a Delhi-based real estate company accused of defrauding homebuyers and currently undergoing insolvency proceedings, officials said on Saturday. The action under the Prevention of Money Laundering Act (PMLA) was launched […]
 Homebuyers 'fraud' case: ED seizes over Rs 6 crore cash during raids against Delhi realty company

Enforcement Directorate Seizes Rs 13.8 Crore in Cash and Jewellery from Delhi-based Real Estate Company

The Enforcement Directorate (ED) has seized a substantial amount of cash and jewellery worth Rs 13.8 crore from a Delhi-based real estate company accused of defrauding homebuyers. The company, Earth Infrastructures Ltd. (EIL), is currently undergoing insolvency proceedings.

Background and Investigation

The action was taken under the Prevention of Money Laundering Act (PMLA) and covered 10 premises of former directors, promoters, and associated entities of the company in Delhi and Gurugram.

Key Facts

  • The company has been undergoing a corporate insolvency resolution process (CIRP) since June 2018.
  • The money laundering case was initiated after taking cognisance of five Delhi Police (Economic Offences Wing) FIRs and a complaint filed by the Serious Fraud Investigation Office (SFIO).
  • The accused entities promised timely delivery of residential and commercial units along with assured returns but failed to deliver.
  • The funds collected from homebuyers and investors were diverted for land acquisition in Gurugram, Delhi, and Rajasthan, or routed to shell companies.

Seized Assets

The ED seized:

  • Rs 6.3 crore in cash
  • Jewellery worth Rs 7.5 crore
  • Silver bullion
  • Luxury watches

Company Background

The group and its associated companies launched multiple real estate projects under the 'Earth' brand across Delhi-NCR and Lucknow. Their major projects include:

  • Earth Towne
  • Earth Sapphire Court
  • Earth Copia
  • Earth Techone
  • Earth Iconic
  • Earth Titanium
  • Earth Elacasa
  • Earth Gracia
  • Earth Skygate

Amount Collected from Homebuyers and Investors

The accused entities collected Rs 2,024.45 crore from more than 19,425 homebuyers and investors.