The Economic Offences Wing (EOW) of the Delhi Police has lodged a First Information Report (FIR) against Ocean Seven Buildtech Pvt. Ltd. (OSB) and its Managing Director, Swaraj Singh Yadav, for purportedly deceiving homebuyers and misappropriating funds from the Expressway Towers project in the city.
Initiated in December 2016 under the Pradhan Mantri Awas Yojana (Urban), the project has yet to be completed, despite having collected Rs 217 crore, which accounts for over 95% of the payments made by buyers. This project, which includes 1,089 flats (1BHK and 2BHK) across 7.5 acres, had promised possession by the year 2022.
The FIR, which was filed on October 15, arises from a complaint that accuses the developer of defrauding homebuyers and misusing project funds associated with the housing initiative in Sector 109. The initial complaint was submitted by Elan Kumaran Subramanian, who was subsequently joined by 25 additional buyers, representing a broader group of affected allottees.
The case has been registered under various sections of the Indian Penal Code (IPC), including 406 (criminal breach of trust), 409 (criminal breach of trust by an agent), 420 (cheating), and 120B (criminal conspiracy). As per the complainants, OSB is alleged to have redirected funds intended for construction to unrelated activities.
Reports indicate that Axis Bank has recognized unauthorized withdrawals from the project’s escrow account during meetings of H-RERA Gurgaon, which has further intensified concerns regarding financial impropriety. Buyers have accused the developer of misrepresentation, delays in project completion, and the fraudulent resale of units that were originally allocated to legitimate allottees, resulting in significant financial and emotional distress for the middle-income families who invested their savings.
The complainants have requested that the EOW trace and freeze the bank accounts of the company and conduct a forensic audit of all financial transactions related to the project. When approached for comment, a spokesperson for the developer refuted the allegations of fraud, labeling them as false and malicious.
The spokesperson attributed the project delays to the Covid-19 pandemic and restrictions imposed by the National Green Tribunal (NGT), but also stated that over 90% of the work is now finished, with the final delivery expected by March 2026.
It was also clarified that Rs 180 crore of the Rs 217 crore has been received from allottees, and all EDC dues have been paid to DTCP.The developer also claimed an extortion attempt of Rs 5 crore by a self-proclaimed buyers’ group and has filed a police complaint seeking protection.
