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Rohtas Projects fraud: ED raids six locations in Lucknow, two in Delhi
The case involves hundreds of home and commercial space buyers allegedly duped by the company’s promoters. Officials said the ongoing searches aim to gather crucial documents and digital records to trace the proceeds of crime (POC) and facilitate further legal action. The POC is estimated at ₹248 crore, according to a forensic audit conducted by the Uttar Pradesh Real Estate Regulatory Authority (UP RERA).
The Enforcement Directorate (ED) on Wednesday raided eight premises, six in Lucknow and two in Delhi, in connection with an alleged real estate fraud involving Rohtas Projects Limited, officials confirmed.
The case involves hundreds of home and commercial space buyers allegedly duped by the company’s promoters. Officials said the ongoing searches aim to gather crucial documents and digital records to trace the proceeds of crime (POC) and facilitate further legal action. The POC is estimated at ₹248 crore, according to a forensic audit conducted by the Uttar Pradesh Real Estate Regulatory Authority (UP RERA).
The case stems from an Enforcement Case Information Report (ECIR) registered by the ED in 2021, based on 48 FIRs filed by aggrieved buyers. The number of FIRs has since risen to 87.
The three promoter brothers -- Piyush Rastogi, Paresh Rastogi and Deepak Rastogi -- have been on the run for the past four years, hindering property attachments due to lack of evidence and non-compliance. UP RERA had earlier de-registered multiple Rohtas projects for non-compliance and financial irregularities.
The alleged scam came under scrutiny in 2019 when hundreds of buyers claimed the promoters had collected crores of rupees for housing and commercial units that were either delayed indefinitely or never delivered. Several projects in Lucknow, including the prominent Rohtas Plumeria, were left incomplete, sparking legal action and public protests.
On July 2, 2022, properties worth ₹116.23 crore belonging to Rohtas Builders were attached in connection with an FIR registered under Section 14(1) of the UP Gangsters Act at Hazratganj police station in Lucknow. The FIR was lodged against owners Paresh Rastogi and his brother Piyush Rastogi, Pankaj Rastogi and Nitin Bhatia. Police said the Lucknow Police Commissionerate issued the attachment order on June 14.
A senior Lucknow police official said 82 FIRs relating to fraud, forgery and criminal breach of trust had been lodged against Paresh Rastogi and his aides at five police stations since 2017. Of these, 60 were registered at Hazratganj police station, 18 at Vibhuti Khand, two in Chinhat, and one each in Gautam Palli and Gosainganj. Attached assets include buildings, clubs, cars and other properties.
