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The Enforcement Directorate (ED) has arrested four promoters and directors of Earth Infrastructures Ltd in a money laundering investigation linked to an alleged INR 2,004 crore homebuyer fraud. The case involves over 19,425 homebuyers and investors who allegedly invested in projects that remained incomplete or undelivered. The agency has alleged diversion of around INR 467 crore through related entities. The investigation stems from multiple Delhi Police EOW FIRs and an SFIO complaint against the company’s promoters and directors.
The Enforcement Directorate (ED) has arrested four promoters and directors of Earth Infrastructures Ltd as part of an ongoing money laundering investigation into an alleged INR 2,004 crore homebuyer fraud that affected more than 19,425 buyers and investors across multiple real estate projects. The arrests were made on 1 June under the Prevention of Money Laundering Act (PMLA), with the accused subsequently produced before a special PMLA court in Delhi. The court granted the agency five days of custodial interrogation.
Those arrested are Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta, all associated with Earth Infrastructures Ltd as promoters or directors. According to the ED, the company raised substantial funds from homebuyers and investors by promising timely delivery of residential and commercial units as well as assured returns on investments. The agency alleges that despite collecting approximately INR 2,004 crore, several projects remained incomplete and possession was not handed over to buyers, resulting in significant losses for purchasers.
Investigators have alleged that nearly INR 467 crore was siphoned off or diverted through various group companies, related entities and associated individuals. The ED stated that part of the alleged proceeds of crime was subsequently used to acquire movable and immovable assets in the names of connected entities and persons. The agency's findings form a key component of the money laundering case currently under investigation.
The probe stems from five FIRs registered by the Economic Offences Wing (EOW) of Delhi Police against Earth Infrastructures Ltd, its directors and related entities under various provisions of criminal law. In addition, the Serious Fraud Investigation Office (SFIO) has filed a criminal complaint under Section 447 of the Companies Act against the company's promoters and directors. The ED initiated its investigation after taking cognisance of these cases.
The arrests follow enforcement action carried out by the agency in April across multiple locations in Delhi and Gurugram linked to the company and its former management. During those searches, the ED recovered cash worth approximately INR 6.30 crore, jewellery valued at around INR 8.78 crore and documents relating to more than 100 immovable properties estimated to be worth over INR 100 crore. The agency stated that these assets were linked to the alleged diversion of funds collected from homebuyers and investors.
Earth Infrastructures Ltd has been undergoing the Corporate Insolvency Resolution Process since 2018. The latest arrests mark a significant development in the long-running investigation into alleged financial irregularities and project delays that have affected thousands of homebuyers across the National Capital Region. The ED said further investigation into the money trail, asset acquisitions and the role of associated entities remains underway.
Source: PTI
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