New Delhi, Apr 11 (PTI) The Enforcement Directorate (ED) has seized Rs 6.3 crore in cash and jewellery worth Rs 7.5 crore following searches against a Delhi-based real estate company accused of defrauding homebuyers and currently undergoing insolvency proceedings, officials said on Saturday.

The action under the Prevention of Money Laundering Act (PMLA) was launched on Friday and 10 premises of former directors, promoters and associated entities of the company -- Earth Infrastructures Ltd. (EIL) -- in Delhi and Gurugram were covered.

The company, according to official records, has been undergoing a corporate insolvency resolution process (CIRP) since June 2018.

According to the ED officials, the money laundering case against the former directors and promoters of the company was initiated after taking cognisance of five Delhi Police (Economic Offences Wing) FIRs, apart from a complaint filed by the Serious Fraud Investigation Office (SFIO), the investigation arm of the Ministry of Corporate Affairs.

The ED seized Rs 6.3 crore in cash and jewellery valued at Rs 7.5 crore, besides some silver bullion and luxury watches during the searches, the officials said.

The group and its associated companies launched multiple real estate projects under the 'Earth' brand across Delhi-NCR and Lucknow. Their major projects include Earth Towne, Earth Sapphire Court, Earth Copia, Earth Techone, Earth Iconic, Earth Titanium, Earth Elacasa, Earth Gracia and Earth Skygate.

The accused entities collected Rs 2,024.45 crore from more than 19,425 homebuyers and investors by promising "timely" delivery of residential and commercial units along with assured returns, the ED said.

However, despite collecting "huge" advances, projects were either not completed or buyers were not given possession. The funds were diverted for the acquisition of land in Gurugram, Delhi and Rajasthan or routed to shell companies, the agency claimed. PTI NES DIV DIV

Money laundering investigation targets real estate fraud allegations, asset seizure, and diversion of homebuyer funds in insolvency-linked case Action under the Prevention of Money Laundering Act was initiated against a Delhi-based real estate company and its former directors, promoters and associated entities in connection with allegations of defrauding homebuyers. Searches were carried out at multiple premises in Delhi and Gurugram in the course of a money-laundering investigation linked to police and fraud-investigation complaints, while the company was stated to have been undergoing corporate insolvency resolution proceedings since 2018. During the searches, cash, jewellery, silver bullion and luxury watches were seized, and the stated allegations include diversion of funds toward land acquisition or shell companies.