ED Arrests Four Earth Infrastructure Promoters in Rs 2,004-Crore Homebuyer Fraud Case

The Enforcement Directorate (ED) has arrested four promoters of Earth Infrastructures Ltd in connection with an alleged Rs 2,004-crore homebuyer fraud and money laundering case that reportedly affected more than 19,000 homebuyers and investors .

The accused Avdhesh Kumar Goel , Rajnish Mittal , Atul Gupta and Vikas Gupta were arrested under the Prevention of Money Laundering Act (PMLA) on June 1. A special PMLA court in Delhi has granted the agency five days' custody for further interrogation.

According to the ED, the real estate group collected around Rs 2,004 crore from over 19,425 buyers and investors by promising timely delivery of residential and commercial units as well as assured returns. However, several projects allegedly remained incomplete, and many purchasers did not receive possession of their properties.

Investigators claim that nearly Rs 467 crore was diverted or siphoned off through various group entities and related individuals. The agency further alleged that part of the proceeds was used to acquire movable and immovable assets linked to the promoters and their associates.

The probe originates from five FIRs registered by the Delhi Police's Economic Offences Wing (EOW), while the Serious Fraud Investigation Office (SFIO) has also filed a criminal complaint against the company's promoters and directors.

During searches conducted across Delhi-NCR in April, the ED seized cash worth Rs 6.30 crore, jewellery valued at Rs 8.78 crore and documents linked to more than 100 properties estimated to be worth over Rs 100 crore.

The case highlights how homebuyer fraud continues to affect thousands despite regulatory reforms such as RERA and stricter oversight mechanisms . Experts say project delays, diversion of funds, weak corporate governance and prolonged legal disputes continue to expose buyers to significant financial risks, underscoring the need for stronger enforcement and faster dispute resolution.