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

The Enforcement Directorate (ED) has intensified its crackdown on real estate-linked financial crimes by filing a money laundering prosecution complaint against Swaraj Singh Yadav, promoter of Ocean Seven Buildtech Pvt. Ltd., in connection with a ₹69 crore housing scam under the Pradhan Mantri Awas Yojana (PMAY) in Gurugram. The complaint was submitted on January 9, 2026, before the Special PMLA Court at Patiala House, New Delhi.

Yadav, who was arrested in November 2025, remains in judicial custody as investigators uncover a complex web of shell companies, forged documents, and large-scale diversion of homebuyers’ funds meant for affordable housing projects.

How the PMAY Housing Scam Unfolded

According to the ED, thousands of middle-class families invested their savings in PMAY-linked affordable housing projects promoted by Ocean Seven Buildtech, hoping to secure low-cost homes. Despite collecting substantial amounts through formal banking channels, the company allegedly failed to construct or deliver a single housing unit.

Instead, investigators found that allotments were cancelled using fabricated “default” records. The same flats were later resold at higher prices, often involving cash components routed through associated firms. Several FIRs registered by the Delhi Police Economic Offences Wing and Haryana Police form the basis of the ongoing probe.

Search operations conducted in Delhi and Gurugram led to the seizure of ₹86 lakh in cash, along with digital devices and financial records pointing to systematic fraud.

Diversion of Funds and Asset Laundering

The ED’s investigation revealed that funds collected from PMAY applicants were siphoned off through more than 20 shell entities using fake invoices and layered transactions. These proceeds were allegedly used to acquire luxury assets, including high-end properties, land parcels, and commercial establishments across multiple states.

On January 5, 2026, the agency issued a provisional attachment order, freezing assets worth ₹51.57 crore, including properties in Gurugram, Himachal Pradesh, and Maharashtra, as well as several bank accounts. Authorities also issued a Look Out Circular against Yadav after detecting attempts to liquidate assets and flee the country.

The total proceeds of crime have been assessed at ₹69.02 crore, a figure that may increase as the investigation progresses.

Legal Action and Ongoing Proceedings

The Special PMLA Court has taken cognizance of the ED’s complaint, which accuses the promoter and linked entities of laundering illegally obtained funds. Parallel criminal cases involving cheating, forgery, and criminal breach of trust are also underway under the Bharatiya Nyaya Sanhita.

Haryana RERA is examining complaints from over 2,000 affected homebuyers, while other financial regulators have frozen hundreds of linked accounts to prevent further dissipation of funds.

A Wider Crisis in Affordable Housing

The Ocean Seven case highlights deeper structural issues in Gurugram’s affordable housing segment, where dozens of PMAY-era projects launched between 2017 and 2020 remain stalled. Regulators estimate sector-wide exposure running into thousands of crores, leaving families without homes years after investing.

Authorities say the latest action is part of a broader enforcement drive aimed at restoring confidence in the real estate sector and ensuring accountability for misuse of public welfare schemes.

What This Means for Homebuyers and Policy

The ED’s action is expected to pave the way for asset auctions and possible recovery for affected buyers. Policymakers are also considering tighter escrow norms, enhanced KYC requirements, and stricter monitoring of affordable housing projects to prevent similar frauds in the future.

For thousands of families still awaiting possession under PMAY-linked projects, the case serves as both a warning and a hope that enforcement agencies are finally closing in on large-scale housing fraud.