ED Arrests Earth Infrastructures Promoters in ₹2,004-Crore Homebuyer Fraud Case
Over 19,000 Homebuyers Allegedly Duped; Four Promoters Held Under PMLA
The Enforcement Directorate (ED) has arrested four promoters and directors of Earth Infrastructures Ltd. in connection with an alleged ₹2,004-crore homebuyer fraud and money laundering case that reportedly affected more than 19,000 buyers and investors across multiple real estate projects. The arrests were made under the provisions of the Prevention of Money Laundering Act (PMLA).
According to the ED, the arrested individuals are Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta, who were responsible for managing and promoting various projects undertaken by the company. They were produced before a Special PMLA Court in Delhi, which granted the agency five days of custodial interrogation.
Alleged Fraud Involving Thousands of Homebuyers
Investigators allege that Earth Infrastructures collected approximately ₹2,004 crore from over 19,425 homebuyers and investors by promising timely delivery of residential and commercial units, along with assured returns on investments. However, many projects were allegedly left incomplete, and possession was not handed over despite substantial collections from buyers.
The ED claims its investigation uncovered the diversion or siphoning of nearly ₹467 crore through a network of group companies, related entities, and associated individuals. The agency alleges that funds collected for construction and project development were routed elsewhere instead of being utilized for completing housing projects.
Investigation Triggered by Multiple FIRs
The money laundering probe originated from five FIRs registered by the Economic Offences Wing (EOW) of Delhi Police against Earth Infrastructures, its directors, and related entities for alleged cheating, criminal breach of trust, and conspiracy. The matter also attracted scrutiny from the Serious Fraud Investigation Office, which filed a criminal complaint against the company’s promoters and directors under provisions of the Companies Act.
Assets and Money Trail Under Scrutiny
The ED has stated that a portion of the alleged proceeds of crime was invested in movable and immovable assets held in the names of various entities and individuals linked to the promoters. Earlier searches conducted in Delhi-NCR reportedly led to the seizure of cash, valuables, and documents connected to the case as investigators sought to trace the money trail.
Impact on Homebuyers
The case is among the largest real-estate fraud investigations currently under scrutiny, with thousands of families reportedly left waiting for homes for years. The arrests are expected to intensify efforts to identify and attach assets that could eventually be used to compensate affected buyers, subject to court orders and legal proceedings.
Key Facts
- Amount allegedly collected: ₹2,004 crore
- Affected homebuyers/investors: More than 19,425
- Funds allegedly diverted: Approximately ₹467 crore
- Promoters arrested: Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta
- Law invoked: Prevention of Money Laundering Act (PMLA)
- Court order: Five days’ ED custody granted for interrogation.
Why This Matters
The Earth Infrastructures case highlights the continuing challenges faced by India’s real estate sector, where delayed projects and allegations of fund diversion have left thousands of homebuyers financially distressed. The ED’s action signals a broader push by authorities to pursue large-scale economic offences and recover assets linked to alleged frauds affecting ordinary investors and homebuyers.
