ED seizes Rs 6.3 crore cash, valuables in homebuyers’ fraud case linked to Delhi firm

The Enforcement Directorate (ED) has seized Rs 6.3 crore in cash and valuables during searches against a Delhi-based real estate firm accused of defrauding homebuyers, officials said on Saturday.

The action was carried out under the Prevention of Money Laundering Act (PMLA) at 10 premises linked to former directors, promoters and associates of Earth Infrastructures Ltd (EIL) in Delhi and Gurugram.

Officials said the agency recovered Rs 6.3 crore in cash and jewellery worth Rs 7.5 crore, along with silver bullion and luxury watches during the searches conducted on Friday.

The company has been undergoing a Corporate Insolvency Resolution Process (CIRP) since June 2018, according to official records.

The ED said its investigation is based on five FIRs registered by the Delhi Police’s Economic Offences Wing, along with a complaint by the Serious Fraud Investigation Office (SFIO).

According to the agency, the accused entities collected Rs 2,024.45 crore from over 19,425 homebuyers and investors by promising timely delivery of residential and commercial units along with assured returns.

Alleged diversion of funds

The ED alleged that despite collecting substantial funds, projects were either not completed or possession was not handed over to buyers.

The agency said the funds were diverted towards acquisition of land in Gurugram, Delhi and Rajasthan or routed through shell companies.

The group had launched multiple projects under the ‘Earth’ brand across Delhi-NCR and Lucknow, including Earth Towne, Earth Sapphire Court, Earth Copia, Earth Techone, Earth Iconic, Earth Titanium, Earth Elacasa, Earth Gracia and Earth Skygate.

The investigation is ongoing.