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The Enforcement Directorate (ED) has arrested six individuals in two major real estate fraud cases in the NCR under the Prevention of Money Laundering Act (PMLA). Promoters of Universal Buildwell-Raman, Varun, and Vikram Puri-were apprehended for allegedly siphoning over INR 1,000 crore from homebuyers with false project promises. In a separate case, Sandeep Yadav and Arvind Walia of Ramprastha Group were arrested for an INR 1,100 crore fraud involving 2,000+ homebuyers across delayed projects like Ramprastha City. Funds were allegedly diverted instead of being used for construction. The ED has also attached assets worth INR 681.54 crore and continues its crackdown on real estate-linked financial crimes.
The Enforcement Directorate (ED) has intensified its crackdown on alleged real estate fraud in the National Capital Region (NCR), making two separate arrests of prominent promoters and directors from major development firms last week. Both arrests were made under the provisions of the Prevention of Money Laundering Act (PMLA). Advertisement
In the first case, the ED apprehended Raman Puri, Varun Puri, and Vikram Puri, who are promoters and former directors of Universal Buildwell Private Limited, in Gurugram. The trio had been absconding for over seven years and were previously proclaimed offenders in various related matters before being taken into custody by the Delhi Police. A special PMLA court in Gurugram remanded them to ED custody until July 29.
The ED's investigation into Universal Buildwell stems from more than 30 First Information Reports (FIRs) filed across Delhi NCR. These FIRs allege that the company failed to complete real estate projects on time and cheated numerous homebuyers and investors. The fraud reportedly involved the deceptive mobilization of over INR 1,000 crore from homebuyers and investors, with false promises of project completion by 2010 and assured returns on commercial projects. These funds were allegedly siphoned off by the promoters to acquire lands and other assets for personal gain. Many homebuyers had invested in these projects, including Universal Trade Tower and Universal Greens, before 2010.
Separately, the ED also arrested Sandeep Yadav and Arvind Walia, promoters of the Ramprastha Group, yesterday. Yadav and Walia, who are directors and majority shareholders in Ramprastha Promoters and Developers Pvt Ltd (RPDPL), were taken into custody following raids at three premises in Delhi and Gurugram. The ED secured their two-day custody after producing them in court.
The investigation against the Ramprastha Group stems from multiple FIRs filed by the Economic Offences Wing (EOW) of both Delhi and Haryana Police. These complaints from over 2,000 homebuyers allege an INR 1,100 crore fraud, stating they did not receive possession of their flats or plots for various housing schemes like Project Edge and Ramprastha City, even 15 to 20 years after booking. The ED alleges that RPDPL collected approximately INR 1,100 crore from these homebuyers between 2008 and 2011. Instead of using these funds for the completion of the promised homes, the company and its promoters are accused of diverting the money to their group companies, often as advances for land purchases. Earlier this month, the ED had already provisionally attached colonies and plots belonging to the group in Gurugram, valued at over INR 681.54 crore, as part of this ongoing investigation.
Both cases underscore the persistent challenges faced by homebuyers in the NCR and the ED's increasing focus on tackling money laundering and financial misconduct within the real estate sector. The PMLA empowers the ED to trace, provisionally attach, prosecute, and confiscate properties derived from criminal activities, aiming to bring accountability in complex financial fraud cases.
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