The Enforcement Directorate (ED) has made a significant arrest in a high-profile money laundering case connected to the government's flagship housing scheme, Pradhan Mantri Awas Yojana (PMAY). Gurgaon-based builder Swaraj Singh Yadav, promoter and managing director of Ocean Seven Buildtech Pvt. Ltd. (OSBPL), was taken into custody following allegations of a massive financial fraud.
The Alleged Modus Operandi
According to the central probe agency, Yadav operated a sophisticated scam that targeted affordable housing beneficiaries. The builder allegedly fraudulently cancelled PMAY allotments of homebuyers who had invested in his Gurgaon project and then resold the same units at nearly double the original price.
The ED claims that flats originally priced at Rs 26.5 lakh under the PMAY scheme were cancelled under false pretenses and subsequently resold for between Rs 40-50 lakh, entirely in cash. This ensured that Yadav's company collected dual payments for the same residential units without refunding the original buyers.
Massive Fund Diversion Uncovered
Investigators have revealed shocking details about the scale of financial irregularities. The ED alleges that Rs 220 crore collected from homebuyers was illegally diverted to purchase personal assets and properties.
Funds deposited by homebuyers into OSBPL Escrow accounts were reportedly withdrawn within 24-48 hours and transferred to associated entities for layering and integration, effectively laundering the money through shell companies.
The diverted funds were used to acquire substantial personal assets, including 500 acres in Maharashtra, 100 acres on Pune Alibag Road, Sai Rupa Resorts in Tirthan Valley, Himachal Pradesh, and land in Boston, USA.
Nationwide Scam with Deep Roots
This isn't an isolated case limited to Gurgaon. The ED investigation has uncovered that Yadav and OSBPL have been involved in a nationwide money laundering operation since 2006, duping thousands of buyers across multiple cities including Mumbai, Jaipur, Kotputli, and Gurgaon.
The Gurgaon project itself, launched in December 2016 across 7.5 acres under PMAY (Urban), remains incomplete despite collecting Rs 217 crore from over 1,000 homebuyers.
During search operations, the ED recovered Rs 86 lakh from Yadav's brother-in-law's home, who confirmed the cash belonged to Yadav and was kept there for safekeeping.
Legal Proceedings and Flight Risk
Yadav was produced before Additional Sessions Judge Shefali Barnala Tandon of Patiala House Court shortly after his midnight arrest. The court sent him to two weeks in ED custody for further investigation.
In her order, ASJ Tandon expressed grave concerns about Yadav being a flight risk, noting that his wife relocated to the United States in August 2025 and is currently residing at Harvard University, Boston. His younger daughter and son are also pursuing graduation at Trinity College, Hartford, Connecticut.
The judge stated that the overseas residence of his immediate family members and diversion of funds abroad substantially increase the flight risk, making custodial interrogation necessary.
The ED, represented by Special Public Prosecutor Simon Benjamin, described Yadav as the central figure directing the siphoning of funds from Escrow accounts into various shell companies.
While Yadav's counsel argued that majority of FIRs have been settled and flats are ready in other cases, the ED maintains that this represents a sophisticated, long-running financial fraud that has exploited a government scheme designed to help economically weaker sections secure housing.
