Delhi Court grants 14 days custody of builder to ED in PMLA case linked with PMAY

New Delhi [India], November 14 (ANI): Delhi's Patiala House court has granted 14 days' custody of a builder accused in a money laundering case linked with PM Awas Yojana (PMAY). It is reported that Swaraj Singh Yadav, the promoter of Seven Ocean Buildtech Pvt. Ltd. (OSBPL), was arrested.
It is alleged that allotment made to homebuyers under PMAY was cancelled fraudulently, and the same flats were sold at higher prices. It is alleged that Rs. 222 crore of homebuyers' funds were defrauded.
Yadav was produced at the residence of the Special Judge after midnight on Thursday.
Special Judge Shefali Barnala Tandon of Patiala House Court granted 14 days' custody of Swaraj Singh Yadav at 6 am on Friday.
The special judge Tandon said in her order, "Even perusal of grounds of arrest reveals that there exists a grave apprehension that the arrestee Swaraj Singh Yadav may attempt to abscond and evade criminal proceedings and financial liabilities. He has confirmed that his wife, Sunita Swaraj, relocated to the United States of America (USA) in August 2025 and is currently residing at Harvard University, Boston, Massachusetts."
"His younger daughter and son are pursuing graduation at Trinity College, Hartford, Connecticut, USA. The overseas residence of his immediate family members and the reported diversion of funds abroad substantially increase the flight risk associated with him. His custodial interrogation is necessary for the purpose of confronting him with the statements of various individuals," the court further said.
It is stated that "OSBPL had launched the Gurugram project in December 2016 under the PMAY (Urban). It was not completed despite collecting Rs 217 crore from over 1,000 homebuyers".
The ED has alleged that Swaraj Singh Yadav and OSBPL have been involved in a nationwide money laundering scam since 2006 and are allegedly defrauding buyers in several locations across India, including Mumbai, Jaipur, Kotputli, and Gurugram.
Special Public Prosecutor (SPP) Simon Benjamin appeared for ED and sought 14 days' custody. He submitted that custody of the accused is required to investigate the case
ED stated that flats allotted under PM Awas Yojana, originally priced at Rs 26.5 lakh, were sold "under the pretext of non-payment" and subsequently re-sold at a premium price (entirely in cash) ranging between Rs 40 and Rs 50 lakh. This resale was executed without refunding the amount paid by the previous customers.
It also stated that the "builder had allegedly withdrawn funds deposited by homebuyers within 24-48 hours from the OSBPL Escrow accounts and transferred them to associated entities for layering and integration of funds".
On the other hand, counsel for the accused argued that the majority of the FIRs relied upon by the ED have been settled. Only one of them is pending for quashing.
ED has claimed that funds worth Rs 222 crore were diverted by OSBPL and its associated persons for purchasing personal assets, including real estate in India, 500 acres in Maharashtra, 100 acres on Pune Alibag Road, Sai Rupa Resorts in Tirthan Valley, Himachal Pradesh and land in Boston, USA.
ED has also claimed that during the search, it recovered Rs 86 lakh from Yadav's brother-in-law's home, who confirmed that the cash belonged to Yadav and was kept there for safekeeping.
Yadav was selling both his personal and company-held assets, including a flat in Gurugram, 40 acres of land in Maharashtra and 15 acres of land in Jaipur, the ED said before the court. (ANI)