The Directorate of Enforcement (ED) has taken a decisive step in a major financial fraud case, filing a comprehensive prosecution complaint this Friday against Swaraj Singh Yadav, the promoter of M/s Ocean Seven Buildtech Pvt Ltd, and other connected entities. The charges are for the serious offence of money laundering under the Prevention of Money Laundering Act (PMLA), 2002.
The Heart of the Scam: Betrayed Homebuyers' Dreams
This legal action stems from multiple First Information Reports (FIRs) originally registered by the Economic Offences Wing of Haryana police, Delhi police, and other stations in Haryana. The core allegations involve large-scale cheating, criminal breach of trust, forgery, and financial fraud targeting homebuyers and investors. These individuals had invested their hard-earned savings in affordable housing projects launched in Gurugram under the central government's Pradhan Mantri Awas Yojana (PMAY).
The complaints revealed a tragic story of broken promises. Lured by assurances of lawful allotment and timely possession, people invested their life savings hoping to own a home. However, not a single home was delivered to date, despite massive fund collection, plunging numerous families into prolonged uncertainty and severe financial distress.
A Web of Deceit: How Funds Were Diverted and Laundered
The ED's PMLA investigation uncovered a meticulously planned scheme. Instead of using the money for construction, funds collected from hopeful homebuyers were systematically diverted and siphoned off for personal gain. The probe revealed that the money was layered through a complex network of shell entities and converted into luxury assets.
In a shocking twist, genuine allotments were unlawfully cancelled. The same residential units were then resold at higher prices, with part of the payment often taken in cash above the legally permissible limit. Forged documents were created to falsely label the original homebuyers as defaulters, thereby justifying these illegal cancellations.
To date, the investigation has established that this organized financial crime generated Proceeds of Crime amounting to Rs 69.02 crore, a figure expected to rise as the probe continues. The laundered money was routed through various entities, including M/s KTP Infratech Pvt Ltd, and used to acquire immovable properties, fund luxury expenditures, and make personal investments.
Enforcement Actions: Seizures, Attachments, and Custody
The ED has moved aggressively to secure the proceeds of this fraud. In November, search and seizure operations were conducted at multiple locations in Delhi and Gurugram. These actions led to the seizure of incriminating documents, digital devices, and cash amounting to Rs 86 lakh.
In a significant move earlier this week, the agency provisionally attached movable and immovable properties with a total value of Rs 51.57 crore. The attached assets are diverse and spread across multiple states, including:
- A villa, hotel, and resort property
- Office spaces and land parcels
- Bank balances
These properties are located in Gurugram, Himachal Pradesh, and Maharashtra.
The investigation also found that the accused attempted to liquidate domestic assets and relocate abroad, posing a serious flight risk. This prompted authorities to issue a Look Out Circular against them. The main accused, Swaraj Singh Yadav, is currently in judicial custody. The ED's investigation under PMLA remains ongoing to identify more proceeds of crime and bring all involved persons and entities to justice.
