The Enforcement Directorate has arrested four promoters of Earth Infrastructures Ltd. in connection with an alleged ₹2,004 crore homebuyer fraud that impacted more than 19,000 buyers and investors across multiple projects.
According to the Enforcement Directorate (ED), the arrested individuals include Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta. The arrests were made on June 1 under provisions of the Prevention of Money Laundering Act following an extensive investigation into alleged financial irregularities and diversion of investor funds.
The ED stated that Earth Infrastructures and its associated entities collected approximately ₹2,004 crore from over 19,425 homebuyers and investors by promising timely delivery of residential and commercial properties as well as assured investment returns. However, according to investigators, many of the projects remained incomplete and several buyers were not given possession of their units despite making substantial payments.
The agency alleges that nearly ₹467 crore was diverted or siphoned off through various group companies, related entities and individuals linked to the promoters. Investigators believe a portion of these funds was subsequently used to acquire movable and immovable assets in the names of associated entities and persons connected with the group.
Following their arrest, the accused were produced before a special PMLA court in Delhi. The court granted the ED five days of custodial interrogation to further examine the financial transactions, fund flows and alleged laundering of proceeds generated from the suspected fraud.
The money laundering investigation stems from five First Information Reports (FIRs) registered by the Economic Offences Wing against Earth Infrastructures, its directors and related entities. The FIRs include allegations under various provisions of the Indian Penal Code concerning cheating, criminal breach of trust and related offences.
The case has also attracted scrutiny from the Serious Fraud Investigation Office, which has filed a criminal complaint under Section 447 of the Companies Act, a provision dealing with corporate fraud. The SFIO’s involvement underscores the scale and seriousness of the alleged misconduct.
Earlier in April 2026, the ED conducted extensive searches at multiple locations linked to the Earth Group across the Delhi-NCR region. During these raids, officials reportedly seized cash worth approximately ₹6.30 crore and jewellery valued at around ₹8.78 crore. Investigators also recovered documents related to more than 100 immovable properties estimated to be worth over ₹100 crore.
The case highlights the continuing challenges faced by thousands of homebuyers who invested in real estate projects that were either delayed indefinitely or left unfinished. It also reflects the increasing focus of enforcement agencies on alleged financial misconduct within the real estate sector, particularly cases involving diversion of customer funds and non-delivery of promised housing units.
With the investigation ongoing, authorities are expected to further examine the financial trail and identify additional assets acquired through the alleged proceeds of crime, while affected homebuyers continue to await resolution and recovery of their investments.
Image source- enforcementdirectorate.gov.in
