Raheja Developers Ltd. was provisionally attached on Monday to properties worth ₹782.36 crore under the Prevention of Money Laundering Act (PMLA), 2002 as part of an ongoing investigation into an alleged homebuyer fraud case by the Enforcement Directorate (ED).
According to the ED, the investigation is based on several FIRs filed by the Economic Offences Wing (EOW) following complaints given by homebuyers. The agency is investigating Raheja Developers, chief Navin M. Raheja, and other individuals and is investigating them for cheating and diversion of funds collected from buyers.
The ED has claimed that the company has collected around ₹2,425.99 crore from nearly 4,600 homebuyers across different residential projects by promising housing units. But investigators claim that several buyers didn’t get the homes as promised for which they were charged.
With the latest attachment of ₹782.36 crore, the total market value of assets attached in the case has risen to ₹2,399.65 crore, the ED said. It believes some of them are linked to the alleged proceeds of crime generated through the suspected fraud.
A provisional attachment under the PMLA means the properties can’t be sold, transferred, or otherwise dealt with until the legal process is completed. The attachment is confirmed by the Adjudicating Authority under the Act. It is not a final determination of guilt, and the allegations will be assessed through the legal process.
The case has attracted attention because of the huge number of homebuyers suspected of being affected. Delayed possession of homes and disputes with real estate developers have been common in India's property business in recent years, leading to ever-more stringent regulatory controls and enforcement actions.
The ED’s attention is on tracing the flow of money, examining financial transactions, and determining whether money collected from homebuyers was diverted or misused. In addition, investigators are also looking for documents related to several residential projects with the company.
At this stage, the Enforcement Directorate has presented its findings as allegations under investigation. The company and the individuals identified in the investigation will have the right to present their defense in the appropriate legal forums, and the matter will be subject to judicial proceedings.
The latest attachment is one of the most significant enforcement actions in the real estate sector this year. As we expand the investigation, we expect the financial irregularities to be addressed, the assets to be recovered, and the legal remedies for homebuyers to be served.
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