ED arrests 4 promoters in Rs 2,004 crore homebuyer fraud case
The Enforcement Directorate (ED) has arrested four promoters of Earth Infrastructures Ltd. in connection with a Rs 2,004 crore homebuyer fraud case. Over 19,000 buyers and investors were allegedly duped, with approximately Rs 467 crore siphoned off, leaving projects incomplete.
Key Highlights
- Four promoters of Earth Infrastructures Ltd. arrested by ED.
- Alleged homebuyer fraud amounts to Rs 2,004 crore.
- Over 19,000 buyers and investors reportedly defrauded.
- Around Rs 467 crore allegedly diverted or siphoned off.
- Projects left incomplete, causing losses to buyers.
- Arrests made under the Prevention of Money Laundering Act.
The Enforcement Directorate (ED) has arrested four promoters of Earth Infrastructures Ltd. – Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta – in connection with a large-scale homebuyer fraud amounting to Rs 2,004 crore. The case involves over 19,000 buyers and investors who were allegedly duped by the real estate group. The ED's investigation, initiated following multiple First Information Reports (FIRs) registered by the Economic Offences Wing (EOW) of Delhi Police and a criminal complaint by the Serious Fraud Investigation Office (SFIO), revealed that Earth Infrastructures Ltd. collected substantial funds by promising timely delivery of residential and commercial units and assured returns. However, the agency alleges that approximately Rs 467 crore was diverted or siphoned off through various group entities and related individuals. This diversion of funds allegedly led to the incomplete status of several projects and the non-handing over of possession of units to buyers, causing significant financial loss to them [2, 4, 6, 11, 12, 13, 19]. The ED stated that part of the alleged proceeds of crime was used to acquire movable and immovable assets in the names of entities and individuals linked to the arrested promoters. Earlier, in April 2026, the ED had conducted searches at premises linked to the Earth Group across Delhi-NCR, seizing cash worth approximately Rs 6.30 crore, jewellery valued at around Rs 8.78 crore, and property documents estimated to be worth over Rs 100 crore [2, 4, 11, 12, 13]. The four arrested promoters were presented before a special PMLA court in Delhi, which granted the ED five days of custody for further interrogation [2, 3, 4, 5, 6, 9, 11, 12]. This case highlights a systemic issue of large-scale real estate fraud in India, with the CBI also filing multiple chargesheets in similar cases involving other builders, indicating a broader problem of fund diversion and cheating of homebuyers across the country [16, 17]. The Deccan Herald, the original source of this news, is an Indian English-language daily newspaper with a centre-left political alignment and a mixed record for factual reporting [7, 8, 10, 21]. The news is specific to India and concerns a significant financial crime impacting a large number of citizens, warranting a high importance score and urgency.
Frequently Asked Questions
Who has been arrested in connection with the Rs 2,004 crore homebuyer fraud case?
Four promoters of Earth Infrastructures Ltd. – Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta, and Vikas Gupta – have been arrested by the Enforcement Directorate (ED).
What is the total amount involved in the alleged homebuyer fraud?
The alleged homebuyer fraud involves a total amount of Rs 2,004 crore, collected from over 19,000 buyers and investors.
Which agency is investigating this case?
The Enforcement Directorate (ED) is investigating the case, with the investigation stemming from FIRs registered by the Economic Offences Wing (EOW) of Delhi Police and a complaint by the Serious Fraud Investigation Office (SFIO).
What were the consequences for the homebuyers?
Despite substantial funds collected, projects were allegedly left incomplete, and possession of units was not handed over, causing wrongful loss to the homebuyers and investors. Approximately Rs 467 crore is reported to have been diverted or siphoned off.