ED Arrests Builder in Rs 2,000 Crore Fraud with Homebuyers

CA Ramesh Agrawal

The ED has arrested four promoters of Earth Infrastructures Ltd. on 1^st June 2026 for Rs. 2004+ Crore fraud under the Prevention of Money Laundering Act (PMLA). The accused Avdhesh Kumar Goel, Rajnish Mittal, Atul Gupta and Vikas Gupta are the directors / promotors of the company. They were presented before a special PMLA court in Delhi. The court granted five days custody to ED for interrogation.

As per the agency, Rs. 2004+ Crore has been collected by the Earth Group from more than 19,425 Home Buyers and Investors promising assured returns and timely delivery of the projects. Rs. 467 Crore has been diverted through Group Companies and other related individuals & concerns.

The ED told that “Despite receipt of substantial funds from the buyers/investors, the projects were either left incomplete or possession of units was not handed over, thereby causing wrongful loss to the homebuyers and investors,”.

The investigation of the agency further revealed that a portion of the alleged proceeds of crime was utilized for acquiring the movable and the immovable properties in the names of various entities and individuals associated with the promoters and directors of the group.

The investigation was done based on the 5 FIR’s filed by the Economic Offences Wing (EOW) of Delhi Police against Earth Infrastructures Ltd., its directors and related entities under IPC. A criminal complaint has been filed U/s 447 of Companies Act against the promotors and directors of the company by the Serious Fraud Investigation Office (SFIO).

ED conducted the searches at the premises linked to Earth Group across Delhi NCR in early April. Cash of Rs. 6.30 Crore, Jewellery of Rs. 8.78 Crore and property documents valuing more than 100 Crore relating to more than 100 Properties were seized during the search conducted by ED.

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