NEW DELHI: The Enforcement Directorate (ED) has apprehended four promoters of a real estate company as part of a money laundering investigation linked to a reported Rs 2,004-crore scam that has impacted over 19,000 homebuyers and investors.
The individuals involved–Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta–are directors of Earth Infrastructures Ltd. They were taken into custody on June 1 under the Prevention of Money Laundering Act (PMLA), according to an official announcement made on Tuesday.
The accused were presented before a specialized PMLA court in Delhi, which granted the agency five days for further interrogation.
The federal agency reported that the group gathered approximately Rs 2,004 crore from over 19,425 homebuyers and investors, promising timely delivery of residential and commercial properties along with guaranteed returns.
The ED has alleged that its investigation uncovered about Rs 467 crore had been misappropriated through various affiliated entities and individuals.
The agency stated, “Despite receiving substantial funds from buyers and investors, the projects were either left unfinished or possession of the units was not delivered, resulting in significant losses for homebuyers and investors.”
The inquiry further indicated that part of the alleged illicit proceeds were utilized to acquire movable and immovable assets under the names of different entities and individuals related to the promoters and directors of the firm.
The investigation was initiated following five FIRs filed by the Economic Offences Wing (EOW) of Delhi Police against Earth Infrastructures Ltd, its directors, and associated entities under various sections of the Indian Penal Code.
Additionally, the Serious Fraud Investigation Office (SFIO) has lodged a criminal complaint under Section 447 of the Companies Act against the group’s promoters and directors.
Earlier in April, the ED executed searches at locations linked to the Earth Group across the Delhi-NCR region.
During the raids, the agency confiscated cash amounting to approximately Rs 6.30 crore, jewelry valued at around Rs 8.78 crore, and property documents relating to over 100 properties estimated to be worth more than Rs 100 crore.
