ED nabs four promoters in homebuyer fraud case

The Directorate of Enforcement (ED) has arrested Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta, promoters and directors of Earth Infrastructures Ltd (EIL) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the investigation against the real estate company and its group entities. The accused, who were arrested on June 1, were produced before the special PMLA court in the national capital, which sent them to five-day ED custody. The anti-money laundering agency had initiated investigation on the basis of five FIRs registered by the Economic Offences Wing (EOW), Delhi Police, against M/s Earth Infrastructures Ltd, its directors and related entities under various sections of the IPC, 1860. Further, the Serious Fraud Investigation Office (SFIO) had also filed a criminal complaint under Section 447 of the Companies Act against the promoters and directors of the Earth Group.

The group collected approximately Rs 2,004 crore from more than 19,425 homebuyers and investors by promising timely delivery of residential/commercial units and assured returns. Investigation further revealed that approximately Rs 467 crore was diverted/siphoned off through various group entities and related concerns and individuals.

However, despite receipt of substantial funds from the buyers/investors, the projects were either left incomplete or possession of units was not handed over, thereby causing wrongful loss to the homebuyers and investors. Investigation has further revealed that a part of the Proceeds of Crime generated from the scheduled offences was utilised for the acquisition of movable and immovable assets in the names of various entities and individuals connected with the promoters and directors of the group.

Earlier, the ED had conducted searches in April 2026 under the provisions of the PMLA at various premises linked to the Earth Group located in Delhi-NCR, resulting in seizure of cash amounting to approximately Rs 6.30 crore, jewellery valued at approximately Rs 8.78 crore and property documents relating to more than 100 immovable properties having an estimated value exceeding Rs 100 crore.