Ramprastha directors sent to 2-day ED custody in Rs 1,100 cr real estate fraud

The Gurugram Zonal Office of the Enforcement Directorate (ED) on Tuesday produced Sandeep Yadav and Arvind Walia—both directors and majority shareholders of M/s Ramprastha Promoters & Developers Pvt Ltd (RPDPL)—before an Additional Sessions Judge, who remanded them to two days of ED custody.

The ED had arrested Yadav and Walia on July 21 under provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with an alleged real estate fraud involving over 2,000 homebuyers. The directors are accused of collecting approximately Rs 1,100 crore across several projects without delivering possession for more than 14 years.

In an official statement, the ED said it also conducted search operations on July 21 at three locations in Delhi and Gurugram as part of the probe. The investigation is based on multiple FIRs filed by the Economic Offences Wing (EOW), New Delhi and Haryana Police.

According to the FIRs, M/s RPDPL and its promoters allegedly cheated homebuyers by failing to hand over the promised flats and plots despite the passage of over a decade.

The ED investigation revealed that the company had launched several projects—including Project Edge, Project Skyz, Project Rise, and Ramprastha City (a plotted colony)—between 2008 and 2011 in sectors 37D, 92, and 95 of Gurugram. Possession was promised within three to four years of launch.

The agency claims RPDPL collected around Rs 1,100 crore from more than 2,000 buyers, but instead of using the funds to complete the projects, over Rs 140 crore was allegedly diverted to group companies as advances for land purchases and other activities. This diversion of funds reportedly led to the failure in delivering the promised homes and plots to buyers.

Delhi