ED Search on cheating & Noncompletion of real estate project
ED Search Operation on cheating & non-completion of real estate projects
Enforcement Directorate Search operation in six locations in Delhi and Gurugram on cheating & non-completion of real estate projects. Search operations conducted by ED. Such a search was conducted with the objective of investigating undervaluation of land through misuse of the IBC process on 20.11.2025 at six locations in Delhi and Gurugram.
The Enforcement Directorate Search Operation is in connection with an undervalued sale of land through misuse of IBC process. The searches included middlemen who were not part of the insolvency process, resolution professionals, NCLT advocates, and buyer of the property M/s RDB Infrastructure and Power Ltd promoted by Vinod Duggar.
The basis of the investigation is Over 30 FIRs were registered under IPC 1860 against MS Universal Buildwell Pvt. Ltd. and its promoters for non-completion of real estate projects and cheating homebuyers/investors.
CIRP Approval: Resolution plan approved by NCLT involving homebuyers and financial creditors. Certain assets are directed to be handed over to homebuyers; the remaining assets are to be liquidated.
Findings Land was undervalued at a throwaway price during resolution, & market value (even at government rates) was much higher than the proposed sale value.
The Enforcement Directorate, Gurugram Zonal Office, conducted search operations on 20 November 2025 at six locations across Delhi and Gurugram in connection with an alleged undervalued sale of land through misuse of the Insolvency and Bankruptcy Code process.
The searches were carried out at the premises of Middlemen allegedly involved despite having no official role in the insolvency process, The Resolution Professional handling the case, Advocates associated with NCLT proceedings, & The buyer entity, M/s RDB Infrastructure and Power Ltd, promoted by Vinod Duggar
Digital evidence was found, like mobile phones containing draft invoices showing illicit consideration and arrangements for illegal gains outside the IBC/NCLT framework.
During the search, the ED recovered and seized unexplained cash of approximately ₹50 lakh, various incriminating documents, & significant digital evidence supporting the ongoing investigation. Section 17 of PMLA, 2002, invoked the seizure of INR 50 lakh in unexplained cash from intermediaries, including an advocate practicing before NCLT.
Further evidence of manipulation of the bidding process and collusion between intermediaries and advocates. Social media data revealed a nexus with a private bank official who secured credit and benefited from undervaluation.
ED Observations Homebuyers (SRAs) were allegedly complicit in undervaluation to maximize asset value. Material seized points to negligence on the part of the Resolution Professional. Status Further investigation is under progress. The action forms part of the ED’s inquiry into alleged irregularities, diversion of assets, and manipulation of valuation during the resolution process under the IBC.
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