The attached assets include immovable properties valued at ₹49.79 crore—comprising a villa, a hotel and resort, office spaces, and multiple land parcels in Gurugram (Haryana), Himachal Pradesh, and Maharashtra. Movable assets worth ₹1.78 crore consist of seized cash and bank balances in accounts linked to Yadav, OSBPL, and related entities.

The ED’s probe, initiated based on multiple FIRs registered by the Economic Offences Wing of Delhi Police and Haryana Police, alleges offences of cheating, criminal breach of trust, forgery, and criminal conspiracy. The complaints stem from OSBPL’s affordable housing projects, where substantial funds were collected from homebuyers with promises of timely delivery.

Investigation revealed that despite receiving funds, projects remained incomplete, possessions were not handed over, and units were arbitrarily cancelled and re-allotted. Homebuyers faced prolonged uncertainty and financial losses while entrusted funds were diverted for unrelated purposes.

ED findings establish that Swaraj Singh Yadav, the key promoter and decision-maker, orchestrated the scheme. Project-specific escrow funds were routed through free accounts and related entities, bypassing statutory safeguards. Units were resold multiple times at inflated prices, parking spaces monetised beyond limits, and forged documents used to justify illegal cancellations.

The diverted proceeds were layered and used for personal expenses, property acquisitions, and other ventures, amounting to a systematic abuse of trust.

The agency stated that further investigation is underway.

This case highlights growing scrutiny on real estate developers amid rising complaints of fund diversion and project delays affecting thousands of homebuyers.

Also Read: PMAY Homebuyers Cheated: ED Arrests OSBPL Head for Fraud, Fund Diversion and Cash-Based Resale Racket

The post ED Attaches ₹51.57 Crore Assets in Ocean Seven Buildtech Homebuyers Fraud Case appeared first on Square Feat India.

The attachment, announced in a press release dated January 7, targets entities linked to Jaypee promoters in a case involving misappropriation of funds collected from homebuyers for the delayed Jaypee Wishtown and Jaypee Greens projects in Noida.

The ED’s Delhi Zonal Office initiated the probe based on multiple FIRs filed by the Economic Offences Wing (EOW) of Delhi and Uttar Pradesh Police. These complaints, lodged by affected homebuyers, accuse Jaypee Infratech Ltd (JIL), Jayprakash Associates Ltd (JAL), and their promoters—including Manoj Gaur—of criminal conspiracy, cheating, and breach of trust.

Investigation findings reveal that JAL and JIL collected around ₹14,599 crore from over 25,000 homebuyers (as per claims admitted by the NCLT). However, substantial portions were allegedly diverted for non-construction purposes and siphoned off to related entities, including Jaypee Sewa Sansthan (JSS), Jaypee Healthcare Ltd (JHL), and Jaypee Sports International Ltd (JSIL).

Manoj Gaur, the Managing Trustee of JSS, is accused of playing a central role in orchestrating the diversions through a complex web of transactions. Assets were also allegedly transferred to Page 3 Buildtech Private Limited, controlled by Honey Katiyal.

The probe intensified with ED searches on May 23, 2025, at 15 locations in Delhi, Noida, Ghaziabad, and Mumbai, yielding incriminating financial records and documents. Manoj Gaur was arrested on November 13, 2025, under Section 19 of the Prevention of Money Laundering Act (PMLA) and remains in judicial custody.

Thousands of homebuyers have been left stranded with incomplete projects for years, highlighting broader issues in the real estate sector.

The ED stated that further investigation is underway. This action comes amid prolonged insolvency proceedings against Jaypee Infratech, which was acquired by Suraksha Group in 2021 to resolve the crisis affecting homebuyers.

Also Read: Share of Real Estate in Recoveries Under IBC Rises to 18.8%

The post ED Attaches ₹400 Crore Assets in Jaypee Group Money Laundering Probe Over Homebuyers’ Fraud appeared first on Square Feat India.

The attachment was carried out on December 17, 2025, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, by the ED’s Gurugram Zonal Office.

Funds Diverted Instead of Project Completion

According to the ED, the attached assets include properties belonging not only to Ramprastha Group, but also to Vatika Group, Unitech Group and other entities, to whom the homebuyers’ funds were allegedly diverted. The money, instead of being utilised for construction and delivery of homes, was siphoned off under the guise of loans, advances and land transactions.

The investigation was initiated based on multiple FIRs registered by the Economic Offences Wing (EOW), New Delhi and Haryana Police, which alleged large-scale cheating and fraud of flat buyers and plot buyers.

Projects Launched, Possession Delayed by Over a Decade

ED investigation revealed that RPDPL had launched several residential projects between 2008 and 2011, including:

• Project Edge
• Project Skyz
• Project Rise
• Ramprastha City (plotted colony)

These projects are located in Sectors 37D, 92, 93 and 95 of Gurugram. While possession was promised within 3 to 4 years, buyers are still waiting even after 10 to 14 years, the agency said.

₹1,100 Crore Collected from Homebuyers

The ED stated that RPDPL collected approximately ₹1,100 crore from more than 2,600 homebuyers, but the funds were systematically diverted to group and non-group companies rather than being used for project execution.

Directors Arrested, Total Attachments Cross ₹866 Crore

Earlier in the case, the ED arrested Arvind Walia and Sandeep Yadav, Directors and majority shareholders of RPDPL, on July 21, 2025. Both are currently in judicial custody.

The agency has also conducted extensive search and seizure operations, leading to two earlier Provisional Attachment Orders covering bank balances, movable assets and immovable properties of RPDPL, its group companies and directors. Prior to the latest attachment, assets worth approximately ₹786 crore had already been attached or seized.

With the current attachment of ₹80.03 crore, the total value of assets attached/seized in the case now stands at approximately ₹866 crore, the ED said.

The investigation is ongoing.

Also Read: ED Attaches Assets Worth ₹307 Crore Linked to Illegal Betting App ‘Fairplay’

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The restitution follows an order dated December 12, 2025, passed by the Recovery Officer, Debts Recovery Tribunal-I (DRT), Chennai, which directed the release of funds realised from the sale of shares that were earlier attached and later restituted to State Bank of India (SBI) by the ED. The amount will now be transferred to the Official Liquidator for distribution among former Kingfisher Airlines employees.

ED Investigation and Asset Attachment

The ED initiated its investigation based on multiple FIRs registered by the Central Bureau of Investigation (CBI) against Kingfisher Airlines, its promoter Vijay Mallya, and associated entities for offences including bank fraud and criminal conspiracy, which are scheduled offences under the PMLA.

The probe revealed large-scale diversion and siphoning of loan funds, leading to the attachment of several movable and immovable properties belonging to Kingfisher Airlines, Vijay Mallya, United Breweries Holdings Ltd., and related entities. Vijay Mallya was subsequently declared a Fugitive Economic Offender on January 5, 2019, under the Fugitive Economic Offenders Act, 2018.

₹14,132 Crore Assets Already Restituted to SBI

According to the ED, assets worth ₹14,132 crore have already been restituted to SBI under Section 8(8) of the PMLA, forming the asset pool from which the present restitution to employees has been made possible.

In a rare move, SBI agreed to accord priority to workmen dues over its own secured creditor claims. Acting upon ED’s facilitation, SBI filed Interlocutory Application No. 01 of 2025 before the DRT, offering the restituted assets for settlement of employee dues. This led to the DRT directing the Official Liquidator to disburse ₹311.67 crore to former employees of Kingfisher Airlines.

Focus on Victim-Centric Recovery

The ED stated that it proactively coordinated with all stakeholders, including senior officials of SBI, to ensure that the long-pending claims of employees were settled. The restitution, the agency said, underscores its commitment not only to depriving economic offenders of proceeds of crime, but also to restoring such proceeds to rightful stakeholders, especially affected workers.

For thousands of former Kingfisher Airlines employees who had been awaiting salary and statutory dues for over a decade, the development marks a long-overdue financial and moral victory.

Also Read: Kingfisher House in Mumbai Sold for Rs 52.25 Crore

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The attachment was carried out on 17 November 2025 by ED’s Bhopal Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002.

Gifted to Daughter to Hide Ill-Gotten Money

According to the ED, the luxurious Dubai apartments and commercial units — located in Centurion Residence (Dubai Investment Park), Dubai Silicon Oasis, Liwa Heights, Business Bay, and World Trade Centre Residences — were originally acquired by Bhasi using proceeds of crime generated through AOPL and its group entities.

To hide the origin and ownership of these assets, Bhasi gifted the Dubai properties to his daughter in 2022–2023, without any monetary consideration.

The agency says this gifting pattern was a deliberate strategy to distance the assets from the main accused while retaining control through family channels — a typical layering technique in international money laundering cases.

The SBI Fraud: How ₹1,266 Crore Vanished

AOPL, under the strategic control of Bhasi, executed illegal merchanting trade transactions, circular trading, fabrication of documents, and diversion of bank funds, ED stated.

A key part of the fraud involves 12 Foreign Letters of Credit (FLCs) worth USD 200 million (approx. ₹1,266.63 crore) issued by SBI’s Shahpura Branch between April and May 2018.

These FLCs devolved on the bank after AOPL failed to meet required margins and defaulted at the time of LC rollovers.
As a result, SBI was forced to make payments to overseas suppliers, triggering massive losses for the public-sector bank.

Layering Through a Global Network

ED investigators uncovered a complex web of domestic and foreign entities used to layer illicit funds before they were routed into high-value assets abroad.

The nine Dubai properties form only a segment of the suspected illegal wealth trail. More attachments and arrests may follow as the investigation deepens.

Further Investigation Underway

ED has confirmed that the probe is still in progress, with more leads emerging regarding fund diversion, global money movement, and additional assets held by the accused and their associates.

Also Read: ED arrests OSBPL MD Swaraj Singh Yadav for cheating PMAY homebuyers through fake cancellations

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Katyal was produced before the Special PMLA Court in Gurugram, which granted six days of ED custody for custodial interrogation.

The Case: 10+ Years of Delayed Homes, Fraudulent Bookings, and ₹300 Crore ‘Proceeds of Crime’

ED initiated the probe based on multiple FIRs filed by the Gurugram Police and Delhi Police Economic Offences Wing (EOW). The case revolves around Krrish Florence Estate, a proposed residential project at Sector 70, Gurugram, spread across 14 acres. The project has been stuck for more than a decade.

Key findings of ED investigation:

1. Fraudulent Licensing & Early Collection of Money

• Katyal allegedly procured the construction license fraudulently from another developer.
• He began collecting money from homebuyers even before obtaining approval from DTCP Haryana.
• The total Proceeds of Crime (POC) from the activity exceed ₹300 crore.

2. Project Stalled for 10 Years

• Only three towers were partially constructed.
• The project never moved forward, forcing homebuyers to initiate insolvency proceedings.

3. Fraud in Government Housing Project

ED found fraudulent allotments made to third parties in a housing project meant for Central Government employees, indicating systematic diversion of flats and funds.

4. Undervalued Land Sale During Insolvency

Katyal allegedly sold 2 acres of the licensed land — valued at ₹130 crore — to outsiders at undervalued rates, violating the Insolvency and Bankruptcy Code (IBC).

5. Diversion of Public Sector Bank Loans

A PSU bank reportedly suffered a loss of ₹80 crore due to loans being routed through fraudulent transactions, ED found.

Multiple Cases, Same Modus Operandi

Katyal is also named in FIRs linked to other stalled projects including:

• Krrish World (Sector 63, Gurugram)
• Province Estate
• Other group projects reportedly following the same pattern — early collection, diversion of funds, no delivery.

Political Link: Why Katyal’s Arrest Matters

According to several national media reports, Amit Katyal has long been considered a close associate of RJD supremo Lalu Prasad Yadav and has figured in investigations involving land-for-job and land deals linked to political circles.
While the ED press release does not mention political connections, the arrest has significant political overtones, given past allegations around real-estate dealings involving political aides and land aggregation networks.

Impact on Homebuyers and the Real Estate Market

This arrest signals a tougher enforcement stance on:

• Fake bookings
• Pre-approval fund collections
• Diversion of construction funds
• Misuse of IBC to sell undervalued land

For Gurugram and NCR homebuyers — who face hundreds of stalled projects — the action is expected to push other state agencies and developers to expedite long-delayed projects.

Further Investigation Underway

ED has stated that searches, fund-tracing, and property attachment actions may follow as the investigation proceeds.

Also Read: PMAY Homebuyers Cheated: ED Arrests OSBPL Head for Fraud, Fund Diversion and Cash-Based Resale Racket

The post Lalu Prasad Yadav’s Close Aide Amit Katyal Arrested in ₹300-Crore Real Estate Fraud: ED Cracks Down appeared first on Square Feat India.

FRAUD ORIGINATED FROM ₹700 CRORE BANK SCAM

The action stems from FIRs filed by the CBI’s Banking Securities & Fraud Cell (BS&FC) alleging that Varron Aluminium and its group entities defrauded:

• Bank of India: ₹293.74 crore
• State Bank of India: ₹401.25 crore

As per the CBI chargesheet, a manual Letter of Credit (LC) of ₹300 crore was issued by Canara Bank in favour of group company VACPL, which Bank of India discounted without proper verification.

ED FINDINGS: CYCLICAL LCs AND SHELL ENTITIES

ED’s investigation revealed that:

• Payments for earlier LCs were repeatedly made by opening new LCs in favour of VAPL, VIPL, and related shell companies.
• The cycle was used to repay old loans, reduce cash credit exposure, and inflate the books of group companies.

During the probe, ED identified proceeds of crime and attached immovable properties worth ₹179.27 crore through two separate orders.

SECTION 8(8) OF PMLA: BASIS FOR RESTITUTION

The agency said the restitution aligns with Section 8(8) of PMLA, which permits restoration of attached or confiscated properties to victims or legitimate claimants when properties—though tied to illicit activity—legally belong to innocent parties.

ED added that it continues to encourage banks and financial institutions to seek restoration of claims using this provision.

SBI’S CLAIM AND COURT ORDER

SBI filed a miscellaneous application before the Special Court (PMLA), Mumbai, seeking restoration of three attached properties valued at ₹55.85 crore (valuation year 2021).

During proceedings, ED submitted an affidavit confirming its willingness to restitute the properties to SBI.

On 26 September 2025, the Special Court allowed the application and ordered the restoration of all three immovable assets to SBI.

Also Read: Big action against errant developers, ₹101 crore recovered

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The Directorate of Enforcement (ED) has provisionally attached eight immovable properties valued at ₹67.03 crore, allegedly beneficially owned and controlled by the banned organisation Popular Front of India (PFI). The attached properties are registered in the names of various trusts and the political front of PFI — the Social Democratic Party of India (SDPI).

This attachment adds to earlier seizures worth ₹61.98 crore, taking the total value of attached assets to ₹129 crore in the ongoing money laundering probe under the Prevention of Money Laundering Act (PMLA), 2002.

Background of the Case

The ED initiated its investigation based on FIRs registered by the National Investigation Agency (NIA) and other law enforcement agencies against PFI and its affiliates.
Investigations revealed that PFI leaders and members raised and collected funds from within India and abroad — through banking channels, hawala, and donations — allegedly for financing terrorist activities across India.

The probe further found that SDPI acted as the political front of PFI, with PFI exercising full control over its finances, election strategy, public programs, and cadre mobilisation. Expenditure records maintained by PFI for SDPI were found in secret ledgers, rather than in official bank statements, indicating deliberate concealment.

Funds were reportedly collected from Gulf countries and local donors under the guise of relief and social work, but were allegedly diverted for activities aimed at disrupting India’s secular fabric and promoting extremist objectives.

Details of Attached Properties

ED’s latest attachment order dated November 6, 2025, covers eight properties across Kerala, registered in the names of the following entities:

Findings from ED Searches

During previous searches, the ED seized detailed property records and financial ledgers maintained by PFI, indicating systematic ownership and management of assets. Key findings include:

• Properties registered under the names of different trusts and individuals linked to PFI.
• Organised accounting and auditing practices for these assets, despite concealment of true ownership.
• Detailed documentation of property locations, survey numbers, sale deed values, and market valuations.
• Physical Education (PE) training sheds constructed on some properties, such as Valluvanad House (Pattambi) and Malabar House (Haritham Foundation).

According to the ED, these sites were allegedly used to conduct offensive and defensive training sessions, teaching manoeuvres with arms under the guise of “PE classes,” as part of a broader jihadi mobilisation effort.

Arrests and Prosecution

So far, the ED has arrested 28 leaders and members of PFI, including:

• MK Faizy, National President of SDPI
• Senior PFI office bearers from national and state executive councils
• Physical Education coordinators and trainers accused of providing weapons training

Multiple prosecution complaints have been filed before competent courts. The ED has so far quantified the proceeds of crime at ₹131 crore.

PFI’s Origins and Organisational Links

Investigations also established that several PFI ideologues were former members of the banned Students Islamic Movement of India (SIMI) — the student wing of Jamaat-e-Islami.
After the 1992 Babri Masjid demolition and subsequent ban on Jamaat-e-Islami, senior PFI members from the National Development Front (NDF) allegedly created a network of trusts across Kerala to hold and control properties in PFI’s name.

Next Steps

The ED stated that its investigation into the money trail, property ownership, and foreign funding links of PFI and SDPI is ongoing. The agency affirmed its commitment to dismantling the financial infrastructure of organisations engaged in terror financing or activities against the unity and integrity of India.

Total Attachments So Far: ₹129 crore (movable & immovable)
Current Attachment (November 2025): ₹67.03 crore (8 properties)
Proceeds of Crime Identified: ₹131 crore
Arrests Made: 28 PFI–SDPI leaders and members

Also Read: ED Attaches Assets Worth ₹307 Crore Linked to Illegal Betting App ‘Fairplay’

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Assets Worth ₹11.14 Crore Under Attachment

According to sources, the ED’s headquarters has attached mutual fund investments worth ₹6.64 crore held in the name of Suresh Raina, and an immovable property valued at ₹4.5 crore belonging to Shikhar Dhawan.

The attachment order follows detailed financial analysis and tracing of money trails linked to proceeds of crime generated through illegal betting and gambling operations in India.

Illegal Betting Platform Under Probe

The ED’s action stems from multiple FIRs filed by various state police agencies against the operators of the illegal offshore betting website 1xBet and its surrogate brand 1xBat (Sporting Lines).

Sources revealed that 1xBet operated in India without authorization, using surrogate branding and advertising to promote its betting platform through social media, online videos, and print media, targeting Indian users in violation of Indian laws.

Endorsements by Cricketers Under Scanner

The investigation has uncovered that both Suresh Raina and Shikhar Dhawan knowingly entered into endorsement agreements with foreign entities representing 1xBet and its surrogates.

These endorsements, sources said, were made in return for payments routed through foreign entities to conceal the illicit origin of the funds. The money is alleged to be linked to proceeds of crime generated from illegal betting activities in India.

Layered Transactions and Foreign Routing

According to sources, payments for the endorsements were structured through layered transactions involving foreign intermediaries. This complex network was allegedly designed to disguise the illegal source of the funds and make them appear legitimate.

The ED’s probe has reportedly traced multiple such transactions between offshore accounts and domestic entities, suggesting a deliberate attempt to launder proceeds of illegal betting operations.

Wider Crackdown on Illegal Betting and Celebrity Links

The latest attachment order marks a significant escalation in the ED’s crackdown on illegal online betting and gambling networks that use surrogate advertising and celebrity endorsements to legitimize their operations in India.

Sources indicate that more celebrity-linked transactions and endorsement contracts are under scrutiny as part of the ongoing money laundering probe.

Further Investigation Underway

The ED continues to pursue multiple leads in coordination with state police units and financial intelligence agencies. The focus remains on tracking foreign remittances, endorsement contracts, and layered financial structures connected to 1xBet and its associated entities.

Further investigation is in progress to determine the full extent of the money trail and identify other individuals or entities involved in the laundering network.

Also Read: Sanjay Raut’s Property Attached by ED

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This coordinated step — between the ED and the Insolvency and Bankruptcy Board of India (IBBI) — aims to unlock the value of assets earlier frozen during money laundering probes, ensuring creditors, banks, and homebuyers get maximum recovery through the insolvency process.

Why This Matters

Until now, if a company under insolvency had its assets attached by ED under PMLA, those properties could not be sold or used by the Resolution Professional — even when a resolution plan was ready.
This created long delays and value erosion for creditors and homebuyers stuck in stalled projects or bankrupt real estate companies.

Now, ED has introduced a standard mechanism for restitution (release) of such assets, allowing them to be used in the Corporate Insolvency Resolution Process (CIRP) or liquidation — with strict safeguards.

How It Works

1. Resolution Professionals (RPs) can now file applications before the PMLA Special Court under Sections 8(7) or 8(8) of the Act to request release of attached assets.
2. A standard undertaking — finalised jointly by ED and IBBI and circulated on November 4, 2025 — must be submitted by the Insolvency Professional.
3. The undertaking ensures that:
   • Released assets are used only for creditors’ benefit, not for promoters or accused persons.
   • Full reporting and compliance continue until the insolvency resolution is complete.
   • Quarterly reports are submitted to the Special Court showing how restituted assets are being used or monetised.

Safeguards Built In

To prevent any misuse:

• Restituted assets cannot be sold to any ineligible promoter or related party (under Section 29A or 32A of IBC).
• Insolvency Professionals must disclose all attached properties in the Information Memorandum or Auction Notice.
• ED will continue to receive cooperation and updates on:
  • PUFE (Preferential, Undervalued, Fraudulent, Extortionate) transactions,
  • Committee of Creditors’ structure, and
  • Details of the successful bidder or resolution applicant.

The undertaking remains valid until the resolution plan or dissolution order is approved by the NCLT.

Why It’s a Big Policy Shift

This marks a turning point in India’s enforcement and insolvency coordination.
Previously, strict PMLA attachments often clashed with IBC resolution efforts — leaving projects stuck and creditors helpless.

Now, ED and IBBI have clarified that “enforcement and value recovery are not conflicting goals.”
Instead, when aligned, they ensure that:

• Economic offenders are prosecuted, and
• Public and creditor interests are protected through lawful recovery.

Impact on Real Estate & Homebuyers

Many stalled housing projects — where developer companies face both PMLA probes and insolvency — can now move forward under this framework.
Attached lands or unfinished towers may now be legally restored to the insolvency process, paving the way for homebuyer refunds or possession through resolution plans.

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