For many homebuyers, a real estate investment begins with a simple calculation: Is the location good? Is the price attractive? And can I trust the developer?
But in some cases, the biggest risk is not the price of the property. It is what happens behind the project.
A recent action by the Directorate of Enforcement (ED) in Ahmedabad highlights exactly that risk. The agency has provisionally attached immovable properties worth ₹129.80 crore in a case involving alleged real estate fraud against homebuyers and investors. The action relates to Ronak Ravjibhai Sonani, Vipulbhai Gordhanbhai Gangani, M/s Keshav Narayan Group and others.
The case is a reminder that attractive property offers, assured Returns and "approvals under process" should never replace proper due diligence.
The Promise Looked Attractive
According to the ED's press release, the accused allegedly presented their real estate schemes as genuine projects and offered flats and shops at attractive pre-launch prices.
The bigger attraction was the promise of unusually high returns.
Investors were allegedly offered assured returns ranging from 54% to 100%. For someone looking at real estate as an investment rather than simply a home, such numbers could appear difficult to ignore.
But there was a fundamental problem.
The projects were allegedly being marketed without mandatory approvals, including N.A. permission and RERA registration. In other words, the sales pitch and the regulatory status of the projects did not match.
And once buyers had put their money into the projects, the situation became considerably more complicated.
Hundreds of Buyers Were Left Waiting
The investigation covered two projects mentioned in the ED's release.
In the Chharodi scheme, money was allegedly collected from around 250 buyers and investors.
In the Akshar Anant scheme at Shela, money was allegedly collected from more than 44 buyers and investors.
The flats and shops promised to buyers were allegedly not delivered, while the money collected was also not refunded.
For a homebuyer, this is more than a failed investment.
It can mean years of savings locked into a project that never reaches completion.
For investors, it can mean expected returns disappearing along with the underlying investment.
And for families who borrowed money to make property payments, the consequences can extend far beyond the original transaction.
The "Approvals Under Process" Problem
One of the most important details in the case concerns the way regulatory approvals were allegedly represented to buyers.
In the Chharodi project, buyers were allegedly told that RERA registration and N.A. permission were "under process."
That phrase can sound harmless.
But for a buyer deciding whether to transfer lakhs of rupees, there is a major difference between:
"Approval received"
and
"Approval under process."
The ED stated that the land intended for the Chharodi project was subsequently sold or transferred to other individuals, leaving buyers stranded. Similar developments were allegedly seen in the Akshar Anant project at Shela, where MoUs and related documents were used to make the project appear genuine before the project was shut down and the land was transferred.
This is precisely why property buyers should verify the actual regulatory position themselves rather than relying solely on statements made by a developer, broker or sales representative.
When Documents Looked Genuine — But Transactions Were Questioned
The investigation also uncovered another serious allegation.
According to the ED, properties were allegedly transferred to third parties through dummy sale deeds without genuine payment, while fictitious payment details were shown in registered documents to make the transactions appear legitimate.
This illustrates a broader risk in real estate transactions.
A document being registered does not automatically mean that the underlying transaction is commercially genuine or free from legal complications.
Property buyers therefore need to look beyond the booking form or sale document and examine the title, ownership history, encumbrances, approvals and actual status of the land.
Why Did ED Attach ₹129.80 Crore in Properties?
The ED has provisionally attached immovable properties that it identified as representing proceeds of crime.
The attached properties include:
- 6,603.332 sq. metres of land at Chharodi
- 7,284 sq. metres of land at Shela
- 30,798 sq. metres of land at Jesangpura and Agol, Taluka Kadi
The total value of the properties attached is ₹129.80 crore.
The purpose of the provisional attachment is not simply to take control of property.
The ED stated that the action is intended to prevent further sale, transfer or concealment of the properties. It can also support confiscation proceedings and possible restitution to rightful claimants under the Prevention of Money Laundering Act (PMLA).
The investigation, however, is still continuing.
The Real Lesson for Homebuyers and Property Investors
The most important takeaway from this case is not simply that ED attached ₹129.80 crore worth of property.
It is that property due diligence cannot stop at the brochure.
A project can have an attractive location.
It can have professional-looking marketing material.
It can offer a price below the surrounding market.
It can promise extraordinary returns.
And yet, the underlying legal and regulatory position may tell a completely different story.
Before paying a builder or investing in a real estate project, buyers should independently verify:
1. RERA Registration
Check whether the project is properly registered under the applicable RERA framework and whether the registration details correspond to the project being marketed.
2. Statutory Approvals
Do not assume that an approval is guaranteed simply because someone says it is "under process."
Verify the relevant permissions before making substantial payments.
3. Land Title
Review the ownership and title documents and understand who actually owns the land on which the project is being developed.
4. Encumbrances and Liabilities
Check whether the property is mortgaged, disputed or subject to other claims.
5. Registered Documentation
A booking form, MoU or broker's receipt should not be treated as a substitute for proper legal documentation.
The ED itself has advised buyers to verify RERA registration, statutory approvals, title documents, land records and encumbrance details before making payments.
High Returns Should Trigger Questions, Not Excitement
Perhaps the biggest warning sign in this case was the promise of returns as high as 54% to 100%.
Whenever a real estate investment comes with unusually high or guaranteed returns, investors should slow down rather than speed up.
The ED specifically identified promises of very high returns, guaranteed buybacks and unusual discounts as warning signs.
A genuine investment opportunity should survive scrutiny.
If asking for documents makes the seller uncomfortable, that itself is information.
If the developer refuses to provide approvals, insists on cash, repeatedly delays registration or cannot clearly explain the project's ownership structure, the risk should be taken seriously.
Shunyatax's View:
Due Diligence Is Cheaper Than Recovery
At Shunyatax, we believe the most expensive mistake in real estate is often not buying the wrong property.
It is buying without verifying the right documents first.
The Ahmedabad case shows how quickly a seemingly attractive property opportunity can turn into a regulatory and financial problem when approvals, ownership, fund flows and documentation are not properly examined.
For homebuyers, investors, HNIs and businesses, property investment should therefore involve more than comparing price per square foot.
A proper review should consider the legal structure, regulatory approvals, ownership records, transaction documents, financial exposure and potential compliance risks before significant funds are committed.
If you are facing a real estate documentation issue, investment dispute, regulatory concern or need help reviewing the compliance aspects of a property transaction, Shunyatax Global can help you assess the situation and identify potential risks before they become larger problems.
Talk to the Shunyatax Advisory Team:
📞 +91 9461514198