The Enforcement Directorate (ED) has alleged that a Gurugram-based real estate company diverted ₹205 crore collected from homebuyers toward a hotel project in Colombo, Sri Lanka, instead of delivering the promised housing plots. The probe forms part of a wider investigation into homebuyer fraud cases across India under the Prevention of Money Laundering Act (PMLA), with many cases concentrated in the National Capital Region (NCR) due to its booming real estate market.
The company under scrutiny, Krrish Realtech, along with its promoter Amit Katyal and several associates, is reported to have collected over ₹500 crore from more than 400 customers without possessing valid licenses required under law. ED officials stated that the funds, described as “proceeds of crime,” were diverted to personal accounts of Katyal and to a network of shell companies controlled by him and his family. These shell entities were reportedly managed through “dummy” directors and were used to acquire immovable assets, including land and flats.
A significant portion of the diverted funds, amounting to ₹205 crore, was channelled to a real estate-cum-hotel project in Colombo via a shell company named Mahadev Infrastructure. Additional sums were allegedly used to purchase properties and land under front companies such as Good Earth Pvt. Ltd., The One Transworks Square Pvt. Ltd. (Sri Lanka-based), and Heaven Tradelink Pvt. Ltd., as well as for the benefit of Katyal’s family members and employees. The ED noted that Katyal’s son, who holds citizenship in Saint Kitts and Nevis, claimed beneficial ownership of assets in Sri Lanka.
This money laundering case follows earlier FIRs lodged with the Delhi Police and Gurugram Police Economic Offences Wing (EOW). The ED conducted searches last year and attached several assets, including the Colombo real estate project and Gurugram lands in Sectors 63, 65, and 70, along with additional immovable properties in Delhi.
According to the agency, Krrish Realtech had no intention of delivering the promised plots on the 70-acre Gurugram land, which is currently valued at approximately ₹2,000 crore. The promoters allegedly attempted to alienate the undeveloped land from genuine buyers, allotting plots to multiple investors, creating fictitious creditors to file a prepackaged insolvency petition before the National Company Law Tribunal (NCLT), and misrepresenting the homebuyers’ list submitted to the Supreme Court-appointed referee. Following objections from the plot buyers, the insolvency application was eventually withdrawn.
The ED further flagged that the list of plot buyers submitted to the Justice Gita Mittal Committee, set up by the Supreme Court to address claims and counterclaims, was falsified to favour the promoters. The agency identified several buyers whose names were excluded from the original list, indicating fraudulent practices.
Amit Katyal was previously arrested in 2023 in a separate money laundering case connected to an alleged railways land-for-jobs scam involving former RJD leaders. The current ED chargesheet was filed in July 2025, and the PMLA court issued notices to the accused on August 19.
Image source- enforcementdirectorate.gov.in
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