Developers arrested in Rs 1,100-crore scam

In a major crackdown on real estate-linked financial fraud, the Enforcement Directorate (ED) has arrested director and promoter of Ramprastha Group, in connection with a money laundering case involving Rs 1,100 crore builder-buyer fraud, a senior officer said here on Monday.

The arrests of Sandeep Yadav and Arvind Walia were made following searches conducted at three locations in Delhi and Gurugram under the Prevention of Money Laundering Act (PMLA).

"The action pertains to a probe against Ramprastha Promoters & Developers Pvt. Ltd. (RPDPL), a key firm of the Ramprastha Group," the officer said.

According to the ED, the two accused -- who are also majority shareholders of RPDPL -- had collected approximately Rs 1,100 crore from over 2,000 homebuyers across multiple residential projects including Project Edge, Project Skyz, Project Rise, and Ramprastha City (a plotted colony).

However, even after a delay of 15 to 20 years, possession of the flats or plots has not been handed over to the buyers. On July 11, the ED had provisionally attached immovable properties worth Rs 681.54 crore belonging to RPDPL and its group companies in the same case.

The financial probe agency suspects diversion of funds and criminal breach of trust. It said further investigation was underway to trace the flow of money and identify other potential beneficiaries involved in the scam.