New Delhi
The Enforcement Directorate (ED) carried out searches at the offices of promoters and associate entities of Delhi-based real estate firm Earth Infrastructures Limited (EIL), which is accused of collecting ₹2,024.45 crore from 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 the searches, carried out on Friday at 10 locations in Delhi and Gurugram, the federal agency recovered ₹6.3 crore in cash and jewellery valued at around ₹7.5 crore, as well as silver bullion and luxury watches.
To be sure, EIL has been undergoing corporate insolvency resolution process since 2018. An email query by HT to the Insolvency Professional didn’t elicit a response.
ED’s money laundering probe against EIL and its group entities stems from five FIRs registered by the Economic Offences Wing (EOW) of the Delhi Police against Earth Infrastructures Ltd, its directors, and related entities under various sections of the Indian Penal Code for cheating, criminal breach of trust, and conspiracy. Further, the Serious Fraud Investigation Office (SFIO) has also filed a criminal complaint under Section 447 of the Companies Act against the promoters and directors of the Earth Group.
“ED investigation has revealed that Earth Group, through Earth Infrastructures Ltd and its associated companies, launched multiple real estate projects under the ‘Earth’ brand across Delhi-NCR, Gurugram, Greater Noida, and Lucknow. 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 asked not to be named.
Investigation, this officer said, revealed that “the accused entities collected approximately ₹2,024.45 crore from more than 19,425 homebuyers/investors by promising timely delivery of residential/commercial units along with assured returns”.
“However, despite collecting huge advances from buyers, projects were either not completed or possession was not handed over to the investors,” the officer said.
A second officer, on condition of anonymity, said that the agency found that the diverted funds were utilised for: acquisition of land parcels in Gurugram, Delhi and Rajasthan in the name of group companies and family members, routing funds through shell or group entities, personal land deals, advances to unrelated entities, salaries to family members without active business roles, and dissipation of proceeds through sale of properties acquired from diverted funds.
The agency officials said on Saturday identified the directors and promoters involved in the fraud as Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta.
“Investigation has also revealed diversion of proceeds of crime through group entities such as 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 acquisition and dissipation of immovable properties,” the second officer said.
