ED Cracks Down on Realty Firm Over Alleged ₹2,000 Crore Homebuyer Fraud

New Delhi: The Enforcement Directorate has conducted extensive searches against Earth Infrastructures Limited (EIL) in connection with an alleged large-scale financial fraud involving thousands of homebuyers.

The action was carried out on Friday at around ten premises spread across Delhi and Gurugram, targeting individuals and entities linked to the company’s promoters. During the operation, officials recovered cash amounting to ₹6.3 crore, along with jewellery worth approximately ₹7.5 crore, in addition to silver and high-end watches.

According to investigators, the company is accused of collecting over ₹2,000 crore from more than 19,000 buyers and investors. The funds were allegedly raised on the promise of timely delivery of residential and commercial properties, along with assured returns.

However, many of these projects were either delayed indefinitely or never completed, leaving investors without possession of their properties.

The money laundering investigation stems from several FIRs registered by the Economic Offences Wing of Delhi Police. Cases have been filed against the company, its directors, and associated entities on charges including cheating, criminal breach of trust, and conspiracy.

Additionally, the Serious Fraud Investigation Office (SFIO) has also initiated legal proceedings under provisions of the Companies Act against those involved.

Preliminary findings suggest that funds collected from buyers were diverted for various purposes, including land purchases in different states under the names of group firms and relatives. Investigators also suspect that money was routed through multiple shell entities and used for unrelated transactions.

Authorities further indicated that some of the funds may have been dissipated through property sales and personal expenditures, raising concerns over financial mismanagement and fraud.

The company had launched several real estate projects across Delhi-NCR and other cities under its brand, attracting a large number of buyers. Many of these developments are now under investigation as part of the ongoing probe.