The Enforcement Directorate (ED) has intensified its investigation into an alleged ₹90.5 crore cooperative housing society fraud by conducting coordinated searches at eight residential and commercial premises across Delhi, Gurugram and Faridabad.
The searches form part of an ongoing money laundering investigation under the Prevention of Money Laundering Act (PMLA) involving alleged financial irregularities connected with Shanti Niketan Co-operative Group Housing Society Ltd. (CGHS).
Searches Conducted Across Eight Premises
According to the ED, search operations were carried out at:
- Residential premises
- Commercial establishments
- Delhi
- Gurugram
- Faridabad
Investigators reportedly seized:
- Cash
- Gold bullion
- Gold jewellery
- Silver
- Digital devices
- Property documents
- Audited financial statements
- Accounting records
- Other documentary evidence
The agency has also frozen several bank accounts linked to the investigation.
Investigation Originated From FIR
The money laundering investigation is based on an FIR registered at:
- Sushant Lok Police Station, Haryana
The FIR reportedly alleges:
- Financial fraud
- Forged memberships
- Misappropriation of society funds
- Manipulation of official records
- Financial irregularities involving society office-bearers and private developers
Alleged Conspiracy Under Investigation
According to the ED, investigators are examining allegations that:
- Then society president Mangal Sain Mittal
- Anil Sharma
- Arun Sharma
- Directors of Connoisseur Infrabuild Pvt. Ltd. (CIPL)
allegedly conspired to obtain control of the cooperative housing society.
The agency alleges that members' funds were misappropriated while official records were concealed and the housing project was allegedly abandoned after substantial collections from buyers.
These allegations remain under investigation.
Assets Worth ₹6.63 Crore Seized
The Enforcement Directorate stated that assets valued at approximately:
- ₹6.63 crore
were seized during the searches.
The seizure reportedly includes:
- ₹55 lakh cash
- Gold bullion worth approximately ₹1.85 crore
- Gold jewellery valued around ₹1.95 crore
- Nearly 100 kilograms of silver worth approximately ₹2.28 crore
In addition, investigators seized:
- Digital storage devices
- Financial records
- Accounting documents
- Property-related files
All seized material will undergo forensic examination.
Additional Memberships Under Scanner
Investigators further allege that:
- Society approval existed for 98 members
- 34 additional memberships were allegedly sold unlawfully
The agency is examining whether these memberships were created in violation of applicable cooperative housing regulations.
Dual Payment Mechanism Alleged
According to the investigation, flats were allegedly marketed at:
- ₹3,500–₹4,000 per square foot
The ED claims payments were collected through:
- Formal banking channels
- Cash transactions
Investigators are examining whether the dual-payment structure was used to conceal portions of the collections.
₹90.5 Crore Money Trail Being Examined
According to the agency, investigators have traced approximately:
- ₹90.5 crore
in collections comprising:
- Bank transfers
- Cash receipts
The investigation further alleges that portions of the collected money were diverted to business entities controlled by the accused.
Suspected Layering of Cash Transactions
Financial analysis reportedly identified:
- Approximately ₹12 crore in cash deposits
Investigators suspect these funds may have been layered through multiple transactions to disguise their origin.
The complete financial trail remains under forensic examination.
Experts Highlight Risks in Cooperative Housing Projects
Experts note that cooperative housing frauds frequently involve:
- Forged memberships
- Record manipulation
- Cash collections
- Diversion of project funds
- Layered financial transactions
- Inadequate governance
They recommend buyers independently verify:
- Land ownership
- Society approvals
- Membership records
- Builder credentials
- Payment mechanisms
- Regulatory compliance
Importance of Banking Channels
Experts further advise that buyers should:
- Make payments only through authorised banking channels
- Preserve official receipts
- Retain sale agreements
- Verify project approvals regularly
- Avoid undocumented cash transactions
These measures significantly improve legal protection in the event of future disputes.
Investigation Continues
The Enforcement Directorate continues to examine:
- Digital devices
- Banking transactions
- Financial statements
- Property documents
- Beneficial ownership
- Flow of funds
Officials believe further analysis may identify additional beneficiaries and reveal a more comprehensive picture of the alleged financial irregularities.
The allegations remain under investigation, and the liability of individuals involved will be determined based on evidence collected during the proceedings.
Shunyatax Global Insight
Shunyatax Global says that cooperative housing projects require the same level of due diligence as large real estate investments. Prospective buyers should verify society registration, approved membership records, land ownership, project approvals, escrow arrangements, audited financial statements and payment structures before investing. Heavy reliance on cash transactions or unofficial payment mechanisms should be treated as a significant compliance and financial risk.