₹86 Lakh Cash Recovered; Court Sends Accused to 14-Day Custody
The Enforcement Directorate (ED) has arrested Swaraj Singh Yadav, Managing Director of Ocean Seven Buildtech Pvt. Ltd. (OSBPL), for allegedly cheating homebuyers—including beneficiaries of the Pradhan Mantri Awas Yojana (PMAY)—by diverting their payments, reselling allotted units at inflated prices, and running a cash-driven premium collection racket. The arrest followed search operations carried out on November 13 across nine locations in Delhi-NCR and other regions.
PMAY Allottees Targeted Through Fake Cancellations and Dual Sales
ED officials said Yadav devised a systematic fraud targeting PMAY allottees. He allegedly cancelled allotments under false pretexts, resold the same units at higher prices, and retained earlier payments—effectively collecting money twice for the same flat.
The investigation indicates that this dual-sale model generated substantial illicit gains, much of which was never reflected in official accounts. Buyers who believed they were getting affordable housing under PMAY were instead pushed into financial loss and prolonged uncertainty.
Cash-Based Premiums and Parking Sales Outside Banking Channels
The ED found that substantial premiums—collected over and above formal payments—were taken entirely in cash. Only nominal amounts were routed through company bank accounts.
A similar mechanism was used for parking sales. According to the ED, most of the premium was collected in cash on the accused’s instructions, bypassing disclosure requirements and depriving homebuyers of transparent pricing.
Escrow Diversion and Shell Entities Used to Launder Funds
The probe suggests that funds deposited in project escrows—meant for construction and buyer protection—were diverted to shell companies controlled by Yadav. This diversion violated multiple financial norms and contributed to delays that left hundreds of homebuyers exposed.
ED officers said this was part of a broader laundering mechanism involving cancellation-refund manipulation, inflated resale pricing, and routing illicit proceeds through relatives and proxy entities.
₹86 Lakh in Cash Seized; Evidence of Asset Liquidation Across States
Searches under Section 17 of the Prevention of Money Laundering Act (PMLA) led to the recovery of ₹86 lakh in cash from a relative’s custody. The agency linked the cash to the sale of land in Rajasthan by Yadav, establishing possession and concealment of proceeds of crime.
The ED also detected accelerated sale of assets in Gurgaon, Maharashtra, and Rajasthan—allegedly to convert illegal gains into movable, easily disposable forms. Investigators noted that Yadav’s wife and children have relocated to the United States.
Midnight Court Hearing Concludes With 14-Day ED Custody
Yadav was produced before the Additional Sessions Judge at Patiala House Courts just after midnight, in compliance with Supreme Court directives. The hearing, which began at 2.25 am, included detailed submissions from both sides before concluding at 6.10 am. The court remanded Yadav to ED custody until November 28.
ED Aims to Trace and Recover Cheated Homebuyers’ Money
The ED said it remains committed to tracing laundered funds, freezing assets purchased through unlawful gains, and initiating the legal process to ensure restitution for affected homebuyers—especially PMAY beneficiaries who were allegedly exploited through the fraud scheme.
Further investigation is ongoing.
Also Read: ED Raids in Mumbai Uncover ₹59 Crore Assets in Probe Into Alleged Fraud at Lodha Developers
