The Enforcement Directorate (ED) has arrested four promoters of a real estate group over their alleged involvement in a Rs 2,004-crore homebuyer fraud and money laundering case affecting over 19,000 investors
The accused, Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta, are promoters and directors of Earth Infrastructures Ltd. They were arrested on June 1 under the Prevention of Money Laundering Act (PMLA), the agency said in a statement on Tuesday.
The four were produced before a special PMLA court in Delhi, which granted the ED five days' custody for interrogation.
According to the agency, the group collected around Rs 2,004 crore from more than 19,425 homebuyers and investors by promising timely delivery of residential and commercial units as well as assured returns.
The ED alleged that its investigation found approximately Rs 467 crore had been diverted or siphoned off through various group entities, related concerns and individuals.
"Despite receipt of substantial funds from the buyers and investors, the projects were either left incomplete or possession of units was not handed over, thereby causing wrongful loss to the homebuyers and investors," the agency said.
The probe further revealed that part of the alleged proceeds of crime was used to acquire movable and immovable assets in the names of various entities and individuals linked to the promoters and directors of the group.
The investigation stems from five FIRs registered by the Economic Offences Wing (EOW) of Delhi Police against Earth Infrastructures Ltd, its directors and associated entities under various provisions of the Indian Penal Code.
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 group.
Earlier in April, the ED conducted searches at premises linked to the Earth Group across Delhi-NCR. During the raids, officials seized cash worth approximately Rs 6.30 crore, jewellery valued at around ₹8.78 crore and property documents related to more than 100 immovable assets estimated to be worth over Rs 100 crore.
