The Enforcement Directorate (ED) conducted searches into a Delhi-based real estate company – Earth Infrastructures Limited (EIL), which is accused of raising funds $2,024.45 crore from over 19,425 homebuyers or investors by promising timely delivery of residential or commercial units along with assured returns but failed to deliver, agency officials said on Saturday.
During searches, conducted on Friday at ten locations in Delhi and Gurugram linked to promoters and entities associated with EIL, the Federal Financial Crimes Investigation Agency found… $6.3 Crores in cash, jewelery worth approx $7.5 crore besides silver bullion and luxury watches.
The ED’s money laundering probe against EIL and its affiliated entities stems from five FIRs registered by the Economic Offenses Wing (EOW), Delhi Police, against Earth Infrastructures Ltd. Its directors and related entities have been charged under various sections of the Indian Penal Code for fraud, criminal breach of trust and conspiracy. Moreover, the Serious Fraud Investigation Office (SFIO) has also filed a criminal complaint under Section 447 of the Companies Act against the promoters/directors of Earth Group.
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“ED investigation revealed that Earth Group, through Earth Infrastructures Ltd. and its associated companies, launched several real estate projects under the ‘Earth’ brand in Delhi-NCR, Gurugram, Greater Noida and Lucknow. The major projects include Earth Towne, Earth Sapphire Court, Earth Copia, Earth Techone, Earth Iconic, Earth Titanium, Earth Elacasa, Earth Gracia, And Earth Skygate,” said an officer who requested anonymity.
This officer said that investigations revealed that “the accused parties collected approximately $2,024.45 crore from over 19,425 buyers/investors by promising timely delivery of residential/commercial units along with assured returns.”
“But despite collecting huge payments from buyers, the projects were either not completed or the property was not handed over to investors,” the officer added.
The agency found that the transferred funds were used to: acquire plots of land in Gurugram, Delhi and Rajasthan in the name of group companies and family members; Channeling funds through Shell/Group entities; Personal land deals, advances to unrelated entities; Salaries of family members who do not have active business roles; The proceeds were squandered by selling the properties acquired with the transferred funds, according to a second officer.
Agency officials said on Saturday that the key persons – directors or promoters – involved in the scam are: Avdesh Kumar Goel, Rajneesh Mittal, Atul Gupta and Vikas Gupta.
“The investigation also revealed diversion of proceeds of crime through group entities like Lavender Infratech Pvt Ltd, Dhurav Real Estate Developers Pvt Ltd, Murlidhar Infracon Pvt Ltd, Banke Bihari Farming Pvt Ltd, Julian Infracon Pvt Ltd and others for possession and dissipation of immovable properties,” the second officer said.
