ED arrests builder in money laundering case; ₹86 lakh seized

ED conducted searches across nine locations in Delhi-NCR and other parts of the country on November 13 under the Prevention of Money Laundering Act (PMLA) and seized ₹86 lakh, said to be the proceeds of crime.

The Enforcement Directorate (ED) on Saturday said it had arrested Swaraj Singh Yadav, managing director of Ocean Seven Buildtech Pvt Ltd (OSBPL), and “uncovered” a trail of fund diversion, cash dealings and systematic laundering of money collected from homebuyers.

ED officials said the agency is now focused on tracing diverted funds of homebuyers, identifying proceeds of crime, and freezing or attaching assets acquired through alleged fraud.

ED conducted searches across nine locations in Delhi-NCR and other parts of the country on November 13 under the Prevention of Money Laundering Act (PMLA) and seized ₹86 lakh, said to be the proceeds of crime. Officials said the cash was found with a relative of Yadav, and was linked to a land sale in Rajasthan, establishing “active possession and concealment” of illicit funds.

A senior ED officer said Yadav orchestrated a complex scheme to siphon off homebuyers’ money collected under Pradhan Mantri Awas Yojana (PMAY) projects.

“During the investigation, it was found that the sale of flats was cancelled on false grounds and then resold at inflated prices without refunding initial buyers. Yadav also collected ‘dual proceeds’ by controlling hefty cash premiums over and above payments made through banking channels. A similar cash-heavy mechanism was also used in the sale of parking spaces, where only a token amount was routed through company accounts,” the officer said, requesting anonymity.

The officer added that Yadav also diverted escrow funds to shell entities and accelerated the liquidation of personal and company assets in Gurugram, Maharashtra and Rajasthan in recent months.

“His wife and children have moved to the United States, and the rapid sale of assets was an attempt to dissipate wealth and evade legal action. Yadav was produced before the additional sessions judge at Patiala House Court at midnight, in line with Supreme Court directions. Proceedings began at 2.25am on November 14 and continued until 6.10am. The court remanded Yadav to ED custody for 14 days, till November 28, and directed us to produce him at 2pm on the scheduled date,” the officer added.

ED officials said the agency is now focused on tracing diverted funds of homebuyers, identifying proceeds of crime, and freezing or attaching assets acquired through alleged fraud.