Money laundering of ₹222 crore in Pradhan Mantri Awas Yojana; ED intensifies investigation into Ocean Seven Buildtech

The Enforcement Directorate (ED) is now preparing to file a charge sheet against Gurugram-based real estate company Ocean Seven Buildtech (OSBPL) and its promoters in a major scam allegedly committed under the Pradhan Mantri Awas Yojana (PMAY). The agency alleges that the company misused this government scheme meant for the poor and middle income group and set up an organized racket of fake cancellation of flats, resale and illegal money laundering.

According to investigators, the company’s managing director Swaraj Singh Yadav, who was arrested on November 13, ran a system in which flats allotted under PMAY were canceled citing false reasons and then resold at much higher prices. The buyers who originally got the flats were also not refunded their money, giving the company an opportunity to double earnings on the same property. A flat which was priced at Rs 26.5 lakh was sold for Rs 40 to Rs 50 lakh.

ED claims that the company earned additional income of lakhs of rupees through this cancellation-resale model and unaccounted cash deals. According to the agency, Swaraj Yadav collected more than Rs 222 crore through fake companies and cash premiums. The amount which should have been kept in escrow accounts for the construction work was also allegedly diverted to shell companies. A similar cash-based system was adopted in the sale of parking slots, where official records showed very small amounts while actual payments were taken in cash.

Investigation has also revealed that before taking action, Yadav tried to quickly sell personal and company properties located in Haryana, Maharashtra and Rajasthan. ED says that this step was taken to protect the properties from confiscation. The agency also told the court that Yadav’s wife moved to the US in 2025 and money was sent abroad through the hawala route through a bank account in her name. Although Yadav argued that many FIRs related to the case had been settled, the court refused to accept it. On November 14, ED was given 14-day custody, after which Yadav is in judicial custody.

The Enforcement Directorate is now evaluating the properties of the company so that they can be attached under PMLA and compensation can be given to the affected homebuyers in future. In this scam, a huge web of alleged shady transactions, fake documents, cash extortion and attempts to hide assets has come to light. The agency is hoping to file a detailed charge sheet in the court soon, so that the legal process in this alleged Rs 222 crore PMAY scam can move forward.

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