Delhi Court Grants ED 14-Day Custody of Realtor in PMAY Housing Scheme Money Laundering Case

The man was arrested in a case linked to allotments made under Pradhan Mantri Awas Yojana. (File)

A Delhi court granted the Enforcement Directorate (ED) 14 days' custody of Gurugram builder Swaraj Singh Yadav on Friday. Yadav, the director of Ocean Seven Buildtech Pvt Ltd (OSBPL), faces allegations in a money-laundering case connected to the Pradhan Mantri Awas Yojana (PMAY) scheme.

Following his arrest, Yadav was presented at Additional Sessions Judge Shefali Barnala Tandon's residence around 2:25 am on Friday. The ED explained the unusual timing was necessary to comply with constitutional court requirements that mandate presenting arrestees within 24 hours of detention.

The PMAY, launched on June 25, 2015, was designed to provide permanent housing to eligible urban households by 2022, coinciding with India's 75th independence anniversary.

Special Public Prosecutor Simon Benjamin alleged that Yadav was involved in canceling PMAY flat allotments originally priced at Rs 26.5 lakh and reselling them at doubled prices between Rs 40-50 lakh. The prosecutor further claimed that Yadav had defrauded thousands of homebuyers across multiple cities including Mumbai, Jaipur, and Gurugram.

According to the ED, Yadav withdrew funds from his company's escrow account and transferred them to associated companies. The agency also alleged he diverted Rs 222 crore to acquire personal assets, particularly real estate.

In its ruling, the court noted, "The perusal of grounds of arrest reveals that there exists a grave apprehension that arrestee Swaraj Singh Yadav may attempt to abscond and evade criminal proceedings and financial liabilities." The court highlighted that the overseas residence of Yadav's immediate family members and reported international fund diversions significantly increased his flight risk.

The court determined that custodial interrogation was necessary to "establish his active role in the commission of the offence of money laundering" and to investigate other aspects of the case. The investigating officer requested the 14-day custody to ascertain the involvement of other accomplices, uncover additional proceeds of crime, and identify the complete operational methods used in the alleged offenses.

After considering the ED's application, the court granted custody until November 28, acknowledging the need to reveal crucial evidence related to the proceeds of crime and other involved persons.

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