The Enforcement Directorate (ED) has urged homebuyers and property investors to exercise caution while purchasing real estate and report builders who refuse to provide RERA registration details, demand cash payments or fail to return money.
The advisory came after the agency provisionally attached assets worth ₹129.80 crore belonging to an Ahmedabad-based real estate company and its promoters in an alleged homebuyers’ fraud case.
Verify RERA Registration and Property Documents
The ED advised buyers to verify the project’s RERA registration, statutory approvals, title documents, land records and encumbrance details before making any payment. Buyers should also determine whether the property is mortgaged or involved in a legal dispute.
The agency cautioned buyers against depending solely on verbal assurances made by brokers or developers. Booking forms, notarised documents and informal promises should not replace a properly executed agreement for sale or sale deed.
According to the ED, refusal to provide project documents, demands for cash, delays in registering documents and failure to refund money can be warning signs that require further scrutiny.
High Returns and Discounts Can Signal Risk
The agency also warned buyers about real estate schemes promising unusually high returns, guaranteed buybacks or exceptional discounts. Such offers, particularly when combined with limited documentation or the absence of RERA registration, should be carefully examined before any financial commitment is made.
The latest advisory follows an investigation involving the Keshav Narayan Group and its linked persons in Ahmedabad. The ED said the attachment order was issued on August 14 under the Prevention of Money Laundering Act (PMLA).
The case originated from multiple FIRs and chargesheets filed by Ahmedabad Police. The ED alleged that the accused marketed flats and shops to homebuyers, investors, traders and middle-class families through real estate schemes that were presented as genuine projects.
The agency alleged that some properties were offered at attractive pre-launch prices with promised returns ranging from 54% to 100%, despite the projects allegedly lacking mandatory approvals, including RERA registration.
Report Suspicious Transactions
The ED has asked buyers to approach law enforcement agencies, RERA authorities and other competent bodies if a builder refuses to provide required documents, insists on cash payments, delays registered documentation, fails to refund money or attempts to transfer project land to third parties.
The agency said the attachment of properties is intended to prevent further sale, transfer or concealment of assets and to protect the interests of affected homebuyers and investors.
For prospective property buyers, the advisory reinforces the importance of conducting document verification before making payments. Checking RERA registration, approvals, ownership records and encumbrances can help identify potential risks before entering into a property transaction.
