₹2,004-Crore Homebuyer Scam Cracks Open: ED Arrests Earth Infrastructure Promoters in Massive Money Laundering Probe
(By Syed Ali Taher Abedi)
Thousands of Homebuyers Left Waiting as Enforcement Directorate Alleges Diversion of ₹467 Crore; Cash, Jewellery and Property Worth Hundreds of Crores Unearthed
New Delhi, June 2: In a major breakthrough in one of the country’s most significant real-estate fraud investigations, the Directorate of Enforcement (ED) has arrested four key promoters and directors of M/s Earth Infrastructures Limited (EIL), a real-estate conglomerate accused of allegedly defrauding thousands of homebuyers and investors of more than ₹2,000 crore.
The arrests of Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta were affected on June 1, 2026, under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), following an extensive investigation into the financial affairs of the Earth Group and its associated entities.
The accused were produced before the Special PMLA Court in Delhi, which remanded them to Enforcement Directorate custody for five days, enabling investigators to further probe the alleged laundering of funds generated through what authorities describe as a large-scale homebuyer fraud.
Trail of Alleged Deception
According to the Enforcement Directorate, the Earth Group collected approximately ₹2,004 crore from more than 19,425 homebuyers and investors across multiple residential and commercial projects.
Buyers were allegedly lured with promises of timely possession of units and attractive assured returns.
However, investigators claim that despite receiving substantial investments, numerous projects remained incomplete while promised possessions were never delivered, leaving thousands of families and investors stranded in prolonged uncertainty and financial distress.
The ED alleges that nearly ₹467 crore of the funds collected from purchasers was diverted and siphoned through a web of group entities, related concerns, and connected individuals rather than being utilised for the development and completion of projects.
Money Laundering Allegations Deepen
The Enforcement Directorate’s investigation stems from five FIRs registered by the Economic Offences Wing (EOW) of Delhi Police against Earth Infrastructures Limited, its directors, and associated entities under various provisions of the Indian Penal Code.
The legal troubles of the group have been compounded by proceedings initiated by the Serious Fraud Investigation Office (SFIO), which has already filed a criminal complaint under Section 447 of the Companies Act, alleging serious corporate fraud by the promoters and directors of the Earth Group.
Investigators further allege that a portion of the proceeds of crime generated from the scheduled offences was subsequently channelled into the acquisition of valuable movable and immovable assets held in the names of various entities and individuals linked to the group’s promoters.
Raids Yield Crores in Cash and Assets
The arrests follow extensive searches conducted by the ED across multiple locations in Delhi-NCR in April 2026.
Those operations reportedly resulted in the seizure of cash amounting to approximately ₹6.30 crore, jewellery valued at nearly ₹8.78 crore, and documents relating to more than 100 immovable properties whose estimated value exceeds ₹100 crore.
The recoveries have significantly strengthened the agency’s case as investigators seek to trace the ultimate destination of funds allegedly diverted from homebuyers and investors.
A Test Case for Homebuyer Protection
Legal observers describe the Earth Infrastructure matter as one of the most consequential real-estate fraud prosecutions in recent years, involving thousands of aggrieved purchasers whose aspirations of home ownership allegedly became casualties of corporate mismanagement and financial misconduct.
The case also underscores the increasing reliance on the Prevention of Money Laundering Act to pursue economic offenders accused of diverting public investments through complex corporate structures.
With the promoters now under custodial interrogation and multiple agencies scrutinising the group’s transactions, the investigation is expected to focus on identifying the complete trail of diverted funds, attachment of additional assets, and potential recovery mechanisms for affected homebuyers.
The Enforcement Directorate has confirmed that further investigation is presently underway.
