ED Seizes Rs 944 Crore in Assets from Piyush Colonisers in Major Fraud Crackdown
The Directorate of Enforcement (ED), operating from its Gurugram Zonal Office, has taken decisive action by provisionally attaching immovable properties valued at approximately Rs 944 crore. This move targets Piyush Colonisers Limited, its former promoters, and associated business entities, marking a significant escalation in a high-profile financial fraud investigation.
Details of the Attached Properties
The attached assets encompass a diverse portfolio of real estate, including project lands, residential apartments, agricultural plots, and commercial spaces. These properties are strategically located across key regions in Haryana and Rajasthan, specifically in Faridabad, Palwal, Rewari, and Bhiwadi.
- Project land parcels covering approximately 63 acres in Palwal.
- Project land parcels spanning around 62 acres in Bhiwadi.
- An additional 7 acres of project land in Dharuhera.
- A substantial commercial space measuring about 19,000 square feet in Faridabad.
Legal and Investigative Background
This provisional attachment follows the filing of a chargesheet by the ED before a Prevention of Money Laundering Act (PMLA) court in Gurugram on March 30. The chargesheet implicates Amit Goel, the former promoter of M/s Piyush Colonisers Limited, along with other individuals involved in the alleged financial misconduct.
The ED initiated its investigation based on multiple First Information Reports (FIRs) registered by the Haryana Police, the Economic Offences Wing in New Delhi, and the Central Bureau of Investigation (CBI). These FIRs were filed under various provisions of the Indian Penal Code (IPC), citing serious allegations such as criminal conspiracy, cheating, and criminal misconduct.
Impact on Homebuyers and Fraudulent Activities
The offences under investigation have had severe consequences for over 1,500 buyers invested in various Piyush Group projects across Palwal, Faridabad, Rewari, and Bhiwadi. According to an ED official, funds collected from these homebuyers were allegedly siphoned off and redirected to subsidiary companies. These funds were then used for subsequent investments in new land parcels, while existing projects remained incomplete, leaving buyers in distress.
Further investigation uncovered that key promoters engaged in deceptive practices by transferring all project land parcels to family members of ex-promoters. This transfer was executed without consideration, effectively alienating the land from rightful homebuyers during insolvency proceedings, thereby exacerbating the fraud.
Insolvency and Ongoing Developments
The actions of the Piyush Group promoters culminated in the non-delivery of promised projects, leading to the company – M/s Piyush Colonisers Limited – entering the Corporate Insolvency Resolution Process (CIRP) in 2019. Despite this, a resolution plan for the insolvent entity has not yet been approved, prolonging the uncertainty for affected stakeholders.
The ED official confirmed that further investigation is actively in progress, indicating that more developments may emerge as authorities continue to unravel the complexities of this case. This crackdown underscores the agency's commitment to combating financial crimes and protecting consumer interests in the real estate sector.
