ED Arrests Earth Infrastructure Limited Promoters in Rs.2000 Crore Homebuyer Fraud Case

• Four Earth Infrastructure Limited promoters arrested by ED under PMLA.
• Over 19,000 homebuyers and investors allegedly affected.
• ED claims ₹467 crore was diverted through related entities.

The Enforcement Directorate (ED) has arrested four promoters of Earth Infrastructure Ltd. in connection with an alleged Rs.2000 crore homebuyer fraud case that reportedly impacted more than 19,000 buyers and investors across multiple real estate projects. The arrests were made on June 1 under the Prevention of Money Laundering Act (PMLA), marking a significant development in one of the country’s major real estate fraud investigations.

According to the ED, the accused Rajnish Mittal, Avdhesh Kumar Goel, Vikas Gupta and Atul Gupta collected around Rs.2000 crore from 19,000 homebuyers and investors by promising timely delivery of residential and commercial units along with assured returns.

However, several projects allegedly remained incomplete, while possession of units was not handed over to buyers, resulting in substantial financial losses. The case is significant because it highlights ongoing concerns about accountability and investor protection in India’s real estate sector.

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The agency stated that its investigation found approximately ₹467 crore was allegedly siphoned off through various group companies, associated entities, and individuals. Following the arrests, the accused were produced before a special PMLA court in Delhi, which granted the ED five days of custody for further interrogation. The agency maintains that the diverted funds were not utilized for project completion despite substantial collections from buyers.

The alleged fraud has left thousands of homebuyers waiting for possession of their homes and investments. The ED further claims that part of the suspected proceeds of crime was used to acquire movable and immovable assets in the names of entities and individuals linked to the promoters. The case has once again drawn attention to stalled housing projects and the financial hardships faced by affected buyers.

The investigation originated from five FIRs registered by the Economic Offences Wing (EOW) of Delhi Police against Earth Infrastructure Ltd., its directors, and associated entities. Additionally, the Serious Fraud Investigation Office (SFIO) has filed a criminal complaint under Section 447 of the Companies Act.

Earlier this year, in April, the ED conducted searches at multiple Earth Group locations across Delhi-NCR, seizing approximately ₹6.30 crore in cash, jewellery worth around ₹8.78 crore, and property documents linked to more than 100 immovable assets estimated to be worth over ₹100 crore. The agency is expected to continue its probe to trace additional assets and determine the full extent of the alleged money laundering operation.

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