ED conducts raids at premises of directors, promoters of Earth Infrastructure Group
The searches were carried out at 10 premises located in Gurugram and Delhi
The Directorate of Enforcement (ED) on Friday conducted search operations in the case of Earth Infrastructures Ltd. (EIL), seizing cash, jewellery, bullion and luxury watches.
During the searches, cash worth Rs 6.3 crore and jewellery valued at around Rs 7.5 crore, besides silver bullion and luxury watches, were recovered.
The raids were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in the case of M/s Earth Infrastructures Ltd. (EIL) and its group entities.
The searches were carried out at 10 premises located in Gurugram and Delhi linked to directors, promoters and associated entities of Earth Group.
The money laundering investigation originates from five FIRs registered by the Economic Offences Wing (EOW), Delhi Police, against M/s Earth Infrastructures Ltd., its directors and related entities under various sections of IPC for cheating, criminal breach of trust and conspiracy.
Further, Serious Fraud Investigation Office (SFIO) has also filed a criminal complaint under Section 447 of the Companies Act against the promoters/directors of Earth Group.
ED investigation revealed that Earth Group, through M/s Earth Infrastructures Ltd. and its associated companies, had launched multiple real estate projects under the “Earth” brand across Delhi-NCR, Gurugram, Greater Noida, and Lucknow.
Major projects include Earth Towne, Earth Sapphire Court, Earth Copia, Earth Techone, Earth Iconic, Earth Titanium, Earth Elacasa, Earth Gracia and Earth Skygate.
Investigation further revealed that the accused entities collected approximately Rs 2,024.45 crore from more than 19,425 homebuyers/investors by promising timely delivery of residential/commercial units along with assured returns.
However, despite collecting huge advances from buyers, projects were either not completed or possession was not handed over to the investors.
The diverted funds were allegedly used for acquisition of land parcels in Gurugram, Delhi and Rajasthan in names of group companies and family members; routing funds through shell/group entities; personal land deals; advances to unrelated entities; salaries to family members without active business roles; as well as dissipation of proceeds through sale of properties acquired from diverted funds.
The main persons involved in the fraud include Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta.
Investigation has also revealed diversion of proceeds of crime through group entities such as Lavender Infratech Pvt Ltd, Dhurav Real Estate Developers Pvt Ltd, Murlidhar Infracon Pvt Ltd, Banke Bihari Farming Pvt Ltd, Julian Infracon Pvt Ltd and others for acquisition and dissipation of immovable properties.
