ED Files Money Laundering Charges Against Ocean Seven Buildtech Promoter in ₹69 Crore PMAY Housing Scam

The Directorate of Enforcement (ED) has intensified its crackdown on affordable housing frauds by filing a Prosecution Complaint on January 9, 2026, before the Special PMLA Court at Patiala House, New Delhi, against Swaraj Singh Yadav, promoter of M/s Ocean Seven Buildtech Pvt. Ltd., and associated entities. The case relates to the alleged laundering of ₹69.02 crore collected from homebuyers under Pradhan Mantri Awas Yojana (PMAY) projects in Gurugram.

Yadav, who was arrested on November 13, 2025, remains in judicial custody as investigators uncover a sophisticated network of shell firms used to divert funds meant for constructing affordable homes. According to the ED, thousands of middle-class buyers were left stranded while the money flowed into luxury assets and benami properties.

Anatomy of the PMAY Housing Fraud Exposed

The case stems from multiple FIRs registered by the Delhi Police Economic Offences Wing and Haryana Police, which revealed that despite collecting crores from buyers, Ocean Seven Buildtech failed to deliver a single housing unit. Instead, allotments were allegedly cancelled using forged “defaulter” records, and the same flats were resold at higher prices through connected entities.

ED searches across Delhi and Gurugram in November led to the seizure of ₹86 lakh in cash and crucial digital evidence. A Provisional Attachment Order later froze assets worth ₹51.57 crore, including luxury villas, hotels, land parcels, and bank balances across multiple states.

Modus Operandi: From Homebuyer Trust to Luxury Assets

Investigators allege that funds collected under PMAY were systematically siphoned off through more than 20 shell companies using fake invoices and layered transactions. Such diversion not only violated RERA norms but also bypassed financial transparency mechanisms that typically rely on auditing services in india to flag irregular fund movement at an early stage.

The proceeds were allegedly used to acquire high-value real estate, luxury vehicles, and other benami assets, while homebuyers continued waiting for promised homes since the project launches in 2018.

Investigation Milestones and Legal Charges

The ED has quantified the proceeds of crime at ₹69.02 crore so far, with the figure likely to rise as parallel probes continue. The Special PMLA Court has taken cognisance of the complaint, while additional cases under cheating, forgery, and criminal breach of trust remain active. Haryana RERA and income tax authorities are also examining linked transactions.

Broader PMAY Fraud Crisis in Gurugram

Ocean Seven’s case highlights a larger crisis in Gurugram’s affordable housing sector, where dozens of PMAY-linked projects have stalled over the past decade. Regulators are now under pressure to tighten escrow controls, enforce stricter compliance checks, and ensure real-time monitoring of project finances.

Implications for Real Estate and Policy

With investor anger mounting, authorities are exploring stronger safeguards, including mandatory escrow audits, technology-driven compliance systems, and faster insolvency proceedings for stalled projects. For affected families, the case is a reminder that enforcement action, while delayed, remains a critical step toward accountability.