ED Seizes Rs 158.85 Crore in Real Estate Money Laundering Crackdown
Indian authorities have provisionally attached assets worth Rs 158.85 crore (approximately $19.2 million) in a widening investigation into an alleged real estate fraud scheme that left hundreds of homebuyers without their promised properties or refunds. The seizure by the Enforcement Directorate's Lucknow office marks the second major action against the Rohtas Group and its network of companies in less than four months.
Background and Context
The case represents one of India's largest real estate fraud investigations, highlighting systemic vulnerabilities in the housing sector where aspiring homeowners often invest their life savings with limited protection. According to the Enforcement Directorate, the investigation traces back to 33 First Information Reports filed by Uttar Pradesh Police against the Rohtas Group and its promoters. The alleged fraud involves multiple unfulfilled township projects promised between 2018 and 2023, representing a growing concern about unregulated real estate development in India's rapidly urbanizing regions.
Key Figures and Entities
At the center of the investigation is Deepak Rastogi, identified as the promoter of Rohtas Project Limited. According to official statements from the Enforcement Directorate, Rastogi and his associates used a complex web of entities—including Vardan Township Private Limited, Adhyaye Realty Infrastructure LLP, Highness Infra Developers Private Limited, and various benami holders—to acquire and conceal assets purchased with diverted customer funds. The companies allegedly marketed three major development schemes: the 'Sultanpur Road Project,' 'Raebareli Road Project,' and 'Rohtas Plumeria,' collecting payments from homebuyers with promises of possession within 30 months or a 150% refund on booking amounts.
Legal and Financial Mechanisms
Under India's Prevention of Money Laundering Act (PMLA), 2002, authorities have detailed how the alleged fraud operated. The Enforcement Directorate's investigation indicates that rather than developing the promised townships, promoters systematically diverted customer funds to acquire land through associate companies and benami entities. These properties were then transferred to Vardan Township Private Limited and Adhyaye Realty Infrastructure LLP to obscure their origins. Some parcels were allegedly acquired from benamidars and immediately mortgaged with banks to "layer and integrate proceeds of crime," effectively laundering the funds through legitimate financial channels. The most recent attachment covers 75 immovable properties valued at Rs 141.21 crore and movable assets worth Rs 17.64 crore, all located in Lucknow.
International Implications and Policy Response
While this case remains domestic in scope, it illustrates broader challenges faced by rapidly developing economies in balancing real estate growth with consumer protection. The successful attachment of assets, following an earlier seizure of Rs 110.05 crore in October 2025, demonstrates enhanced enforcement capabilities under India's PMLA framework. However, real estate experts continue to urge stronger oversight mechanisms, including more robust implementation of the Real Estate (Regulation and Development) Act (RERA), which was designed to protect homebuyers from such fraudulent practices. The case has intensified calls for mandatory escrow accounts for real estate projects and enhanced due diligence requirements for property developers.
Sources
This report draws on official statements from the Enforcement Directorate, court documents related to the Prevention of Money Laundering Act investigation, and public records of the 33 First Information Reports filed by Uttar Pradesh Police. Additional context comes from Indian real estate regulatory frameworks under RERA and previous Enforcement Directorate action in similar cases between 2022-2025.
