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The Enforcement Directorate has launched a sweeping investigation into Ansal Properties and Infrastructure Ltd, raiding multiple offices across Delhi-NCR and Lucknow earlier this week in connection with the alleged misappropriation of over INR 600 crore from homebuyers. This follows earlier findings by UP RERA highlighting financial violations by the developer. Promoters Pranav and Sushil Ansal are under scrutiny for serious offences, including fraud and misuse of funds. The firm, now declared insolvent, is under CIRP. UP RERA had previously penalised the company and barred it from selling properties due to regulatory violations.
Ansal Properties and Infrastructure Ltd. (APIL) offices in Delhi, Noida, Ghaziabad, and Lucknow were the target of widespread raids by the Enforcement Directorate (ED) earlier this week. These operations were launched as part of an ongoing investigation into the alleged misappropriation of over INR 600 crore collected from homebuyers. Acting upon findings shared by the Uttar Pradesh Real Estate Regulatory Authority (UP RERA), the ED is probing serious financial irregularities associated with the developer's residential and township projects. Advertisement
A dedicated six-member team from the ED, supported by armed personnel, executed the raid at the company's Lucknow premises. The officials reportedly combed through financial documents, digital records, and bank statements while also questioning staff present at the site. Simultaneously, parallel raids were conducted across other APIL offices in the National Capital Region, aimed at tracing the route and utilisation of funds gathered from the public.
Prominent individuals associated with the company, including Pranav Ansal and Sushil Ansal, have come under the radar for their alleged involvement in multiple financial crimes. These include fraudulent transactions, illegal sale of government-owned land, and defrauding investors. The company has over 70 First Information Reports (FIRs) filed against it, and the National Company Law Tribunal (NCLT) has already declared APIL insolvent. The company is currently undergoing the Corporate Insolvency Resolution Process (CIRP).
In a related context, the Income Tax Department had previously raided the same Lucknow office, where it reportedly seized documents linked to tax evasion and dubious financial dealings. The raids are seen as a continuation of the regulatory heat the company has faced in recent years. APIL had notably benefited from policy relaxations under the 2003 Hi-Tech Township Policy, which facilitated the expansion of its township project area from 1,335 to 6,500 acres-a move that had earlier drawn criticism and legal scrutiny.
Meanwhile, UP RERA had earlier penalised Ansal API with a fine of INR 3.05 crore for siphoning off INR 60.57 crore collected from buyers across three housing projects. The authority barred the company from selling, transferring, or marketing any residential property in its Sushant Megapolis Hi-Tech Township project in Greater Noida. UP RERA officials had pointed out that despite repeated notices and opportunities to appear for hearings, the developer failed to furnish satisfactory responses or documentation.
Sources familiar with the matter indicated that the ED's current action seeks to determine how public funds, meant for housing development, were diverted or misused. The case has sparked concern among thousands of homebuyers who had invested in APIL's projects, many of whom continue to face prolonged delays and legal uncertainty.
With insolvency proceedings in motion and enforcement agencies tightening their grip, this case serves as a cautionary tale for real estate firms navigating complex legal and financial frameworks. Regulatory bodies are increasingly asserting their authority to ensure accountability, transparency, and trust in the housing sector.
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