How an affordable housing promise became a ₹69 cr money laundering case

The investigation conducted by ED revealed a carefully orchestrated scheme whereinfunds collected from homebuyers for construction were systematically diverted and siphoned off for personal enrichment

For hundreds of homebuyers, it began with a familiar Indian dream: owning a modest home under the government’s affordable housing scheme. What followed instead was years of uncertainty, vanished savings and, now, a major money-laundering prosecution.

 

On January 9, 2026, the Directorate of Enforcement (ED) filed a prosecution complaint before a special court in Delhi against Swaraj Singh Yadav, promoter of Ocean Seven Buildtech Pvt. Ltd., accusing him and associated entities of laundering money collected from homebuyers under affordable housing projects 

 

The promise: Affordable homes under a government-backed scheme

 

The projects were launched in Gurugram under the Pradhan Mantri Awas Yojana (PMAY)—a scheme meant to help middle- and lower-income families own homes. Buyers invested their life savings believing:

 

 

• Homes would be lawfully allotted
• Construction would be completed on time
• The project was regulated and safe

 

None of that happened.

 

The reality: No homes delivered, money gone

 

According to the ED, not a single home has been delivered to date, despite substantial funds being collected from buyers. Families were left paying EMIs and rent simultaneously, trapped in financial distress and prolonged uncertainty.

 

How the alleged fraud worked (step by step)

 

• The ED’s investigation uncovered what it describes as a carefully orchestrated financial crime, not a failed project:
• Money was collected specifically for building homes under the affordable housing scheme.
• Rather than being spent on construction, funds were systematically siphoned off.
• The money was routed through multiple shell entities, including KTP Infratech Pvt. Ltd., to hide its trail.

 

"The investigation conducted by ED under PMLA has revealed a carefully orchestrated scheme wherein funds collected from homebuyers for construction were systematically diverted and siphoned off for personal enrichment including acquisition of movable/immovable properties. Instead of building homes, the money entrusted by hundreds of families was misused, layered through a web of shell entities and converted into luxury assets. Genuine allotments were unlawfully cancelled and the same residential units were subsequently resold at higher prices, with a portion of the consideration being received in cash over and above the legally permissible price," said the ED release.

 

Fake defaults created

Genuine homebuyer allotments were unlawfully cancelled by falsely portraying buyers as defaulters using forged documents.

 

Cancelled units were resold to new buyers at higher rates, with part of the payment allegedly taken in cash—over and above legal limits.

 

Proceeds were used to acquire villas, hotels, resorts, land parcels and other high-value properties, not affordable housing.

 

The ED estimates the proceeds of crime at ₹69.02 crore, a figure expected to rise as the probe continues . 

Fund-laundering through shell companies including M/s KTP Infratech Pvt. Ltd.

 

What the ED seized and attached

 

During searches conducted in Delhi and Gurugram on November 13, 2025, the ED:

 

• Seized ₹86 lakh in cash
• Confiscated incriminating documents and digital devices
• Provisionally attached assets worth ₹51.57 crore, including villas, hotel/resort properties, office spaces, land and bank balances across Gurugram, Himachal Pradesh and Maharashtra 

 

Why the arrest happened

 

The ED also found that the accused allegedly attempted to:

 

• Liquidate domestic assets
• Relocate abroad
• Fearing a flight risk, authorities issued a Look Out Circular. Swaraj Singh Yadav was arrested on November 13, 2025, and is currently in judicial custody 

 

This case is a stark reminder that:

 

• Affordable housing does not automatically mean low risk
• Government schemes can still be misused by private developers
• Real estate fraud often looks like “project delay” until money trails are examined

 

For investors and buyers, the biggest lesson is this:

 

If funds raised for construction are not transparently ring-fenced and monitored, even regulated-looking projects can collapse into financial crime.

 

What happens next

 

The ED says the investigation under the Prevention of Money Laundering Act (PMLA) is ongoing to:

 

• Identify additional proceeds of crime
• Trace further assets
• Bring other individuals and entities involved to book 

 

For the affected families, the legal process may still be long—but the prosecution marks a critical step in holding financial misconduct in the housing sector accountable.