Delhi Police EOW Files Chargesheet in Multi-Crore Gurgaon Housing Fraud
The Economic Offences Wing (EOW) of Delhi Police has taken a significant step in a major alleged housing fraud case by filing a chargesheet against a Gurgaon-based developer and its directors. The case involves the "Expressway Towers" affordable housing project in Sector 109, Gurgaon, with accusations of cheating over 1,000 homebuyers and misappropriating funds worth more than ₹217 crore.
Details of the Chargesheet and Accused Parties
The chargesheet, filed under Sections 406, 409, 420, 120B, and 34 of the Indian Penal Code in connection with FIR No. 132/2025, names developer Swaraj Singh Yadav and others associated with M/s Ocean Seven Buildtech Pvt Ltd. According to the final report submitted before a Delhi court, the case originated from a complaint by Elan Kumaran Subramanian and several other allottees. They alleged that they were induced to invest in the project based on promises of timely delivery and necessary approvals.
The project was launched in 2016 under the Pradhan Mantri Awas Yojana (PMAY) and was scheduled for possession by 2022. However, investigators discovered that despite collecting nearly 95% of the sale consideration from approximately 1,089 buyers—totaling around ₹217 crore—the builder failed to complete construction or hand over flats within the promised timeline.
Allegations of Fund Diversion and Unlawful Practices
The chargesheet alleges that funds collected from homebuyers were diverted and misused for purposes unrelated to the project. It further states that the accused engaged in unlawful practices, such as canceling units allotted to original buyers and reselling them to others without refunding payments. Investigators also flagged regulatory violations, noting that the project's license and Haryana RERA registration lapsed around 2021 and were not renewed. A penalty of about ₹21.5 crore remains pending due to these defaults.
During the probe, the EOW found that the company allegedly misrepresented facts to buyers, claiming to have all statutory approvals in place. Buyers were persuaded through advertisements and marketing pitches, with many investing their life savings in the project. The report highlights suspected financial irregularities, including routing of funds through associated entities, indicating possible layering and siphoning. It also cites allegations of fraudulent land transactions in Maharashtra linked to the accused and concealment of company assets.
Arrest and Investigation Details
On page 3 of the chargesheet, Swaraj Singh Yadav is shown to have been arrested in December 2025 and is currently in judicial custody. The EOW investigation relied on extensive documentation, including buyer agreements, bank records, correspondence, and regulatory filings, as detailed in annexures running into over 2,600 pages. Officials described the case as pointing to a "systematic pattern of cheating, criminal breach of trust, and financial fraud," affecting a large number of middle-class homebuyers.
Further proceedings in the matter are expected as the court takes cognizance of the chargesheet. This case underscores ongoing challenges in the real estate sector, particularly in affordable housing projects, and highlights the need for stricter regulatory oversight to protect consumers from such fraudulent activities.
