ED Cracks Down on Delhi-NCR Real Estate Giants
• World Trade Center and Bhutani Group Under ED’s Scanner for Alleged Fraud
• ED Raids Major Builders Amidst Homebuyer Scam Allegations
Unmesh Gujarathi
Sprouts News Exclusive
In a significant move, the Enforcement Directorate (ED) conducted extensive raids on Thursday, targeting prominent real estate firms WTC Builder and Bhutani Group in the Delhi-NCR region. The operation, spanning approximately a dozen locations across Delhi, Noida, Faridabad, and Gurugram, is part of an ongoing money laundering investigation concerning alleged fraud against homebuyers. The probe was initiated following First Information Reports (FIRs) lodged by the Faridabad police and the Economic Offences Wing of the Delhi Police.
Authorities allege that WTC Builder, under the leadership of promoter Ashish Bhalla, amassed over Rs 1,000 crore from investors without delivering the promised projects over the past decade. Sprouts News has learned that multiple complaints were filed against these firms, prompting the ED to take swift action. Attempts to reach WTC Builder and Bhutani Group for comments have so far been unsuccessful.
• World Trade Center and Bhutani Group under ED’s scanner for alleged fraud
The Enforcement Directorate (ED) has intensified its scrutiny of major real estate developers in the Delhi-NCR area, focusing on WTC Builder and Bhutani Group. Raids were conducted at multiple premises associated with these firms, following allegations of financial misconduct and fraud involving substantial sums from homebuyers.
The investigation stems from FIRs filed by local law enforcement agencies, highlighting concerns over undelivered projects and potential misappropriation of funds. According to sources, the ED is also examining financial transactions linked to these companies to trace potential money laundering activities. The action comes amid growing concerns in the real estate sector, with Sprouts News reporting that several homebuyers have been left stranded without possession of their properties.
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• Enforcement Directorate raids major builders amidst homebuyer scam allegations
In response to mounting complaints from homebuyers, the Enforcement Directorate (ED) has launched a series of raids targeting leading real estate companies in the Delhi-NCR region, including WTC Builder and Bhutani Group. The operations, conducted under the Prevention of Money Laundering Act (PMLA), aim to uncover evidence related to alleged scams where investors were defrauded of significant amounts.
Preliminary findings suggest that these firms collected large sums from investors without fulfilling their commitments to project completion. The ED’s intervention highlights the ongoing challenges in the real estate industry concerning investor trust and financial transparency. Officials have indicated that further action could follow based on the evidence gathered during the raids.
• Previous Investigations
In January 2024, the Income Tax Department raided Bhutani Group, seizing ₹1,500 crore in cash and uncovering ₹595 crore in unaccounted funds since the 2019-20 financial year.
• Recent Developments
In November 2024, Bhutani Infra acquired ‘Logix City Center’ for approximately ₹1,000 crore. However, the company reported a ₹29.39 crore loss in Q2 FY 2024-25. Earlier this month, Bhutani Infra withdrew from a planned collaboration with the WTC Group.