Invested in a delayed project? The Earth Infrastructure case offers a cautionary tale
Invested in a delayed project? The Earth Infrastructure case offers a cautionary tale
₹2,004 Crore Collected, 19,000 Buyers Waiting: ED Makes Key Arrests Representative Picture
Sunainaa Chadha NEW DELHI
Listen to This Article
India's Enforcement Directorate (ED) on 1 June arrested four promoters of a real estate group in connection with a money laundering probe into an alleged Rs 2,004-crore homebuyer fraud that affected more than 19,000 buyers and investors.
The arrests come years after many buyers invested their life savings in residential and commercial projects that were either delayed indefinitely or never completed, leaving purchasers battling financial stress, EMIs and lengthy legal proceedings.
The accused are Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta. The four are promoters/directors of Earth Infrastructures Ltd.
What has happened?
Earth Infrastructure was once a prominent real estate developer that launched several residential and commercial projects across Delhi-NCR, Greater Noida and Lucknow. The company attracted a large number of buyers by promising timely delivery of homes and investment returns.According to investigating agencies, the company and its associated entities collected substantial amounts from homebuyers and investors for multiple projects. However, many of these projects allegedly remained incomplete or were significantly delayed, leaving buyers stranded.
As construction stalled, thousands of purchasers began approaching regulatory authorities, police agencies, consumer forums and courts. Several projects eventually entered insolvency proceedings after homebuyers sought legal remedies against the developer.
The ED said it arrested Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta, promoters and directors of Earth Infrastructure Ltd. (EIL), on June 1 under the Prevention of Money Laundering Act (PMLA). A special court in Delhi subsequently granted the agency custody of the accused for further investigation.
The money laundering probe stems from multiple FIRs registered by the Economic Offences Wing of Delhi Police as well as proceedings initiated by the Serious Fraud Investigation Office (SFIO). Authorities are investigating allegations that funds were collected from homebuyers and investors across several real estate projects but projects were not delivered as promised.
What is the scam?
The group collected approximately Rs 2,004 Crore from more than 19,425 homebuyers and investors by promising timely delivery of residential/commercial units and assured returns.
Investigation further revealed that approximately Rs 467 crore was diverted/siphoned off through various group entities and related concerns/ persons.
Despite receipt of substantial funds from the buyers/investors, the projects were either left incomplete or possession of units was not handed over, thereby causing wrongful loss to the homebuyers and investors.
Investigation has further revealed that a part of the Proceeds of Crime generated from the scheduled offences was utilised for the acquisition of movable and immovable assets in the names of various entities and individuals connected with the Promoters/Directors of the group.
Which projects are under scrutiny?
According to the ED, Earth Infrastructure and its associated entities launched several projects, including:
Earth Towne
Earth Sapphire Court
Earth Copia
Earth Techone
Earth Iconic
Earth Titanium
Earth Elacasa
Many buyers in these projects have been waiting for possession for years. Some projects reportedly witnessed little progress despite substantial collections from customers.The delays forced numerous homebuyers to seek intervention through insolvency proceedings, consumer courts and other legal forums.
What did the ED find during searches?
Earlier, ED had conducted searches in April 2026 under the provisions of PMLA at various premises linked to the Earth Group located in Delhi-NCR. According to the agency, investigators recovered:
Approximately ₹6.3 crore in cash
Jewellery valued at around ₹7.5 crore
Silver bullion
Luxury watches
Documents linked to more than 100 immovable properties
The ED has also stated that some of these properties are suspected to be benami assets, with an estimated value exceeding ₹100 crore.
What happens next?
The ED's investigation is ongoing. Authorities are expected to continue examining financial transactions, company records, asset ownership structures and the movement of funds linked to Earth Infrastructure and its promoters.
If investigators establish that assets were acquired using proceeds of crime, those assets could be attached and become part of future recovery proceedings, subject to court orders.
At the same time, insolvency and other legal proceedings involving various projects may continue independently.
For homebuyers, the arrests represent an important step in the investigation, but they do not immediately resolve the larger issue of project completion or compensation.
Reminder for property buyers
he Earth Infrastructure case serves as a cautionary example of the risks associated with under-construction real estate projects.
Before investing, buyers should carefully examine a developer's track record, project approvals, financial position, regulatory compliance and ongoing litigation. Checking RERA registrations, construction progress and insolvency records can help identify warning signs early.
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Jun 03 2026 | 10:58 AM IST