ED arrests three in ₹1,000 crore real estate fraud case

The Enforcement Directorate (ED) has arrested three persons in connection with an alleged real estate fraud involving Universal Buildwell Private Limited.

The accused - Raman Puri, Varun Puri and Vikram Puri - are promoters and former directors of Universal Buildwell. According to the agency, they had been “absconding from court summons for more than seven years and were declared proclaimed offenders by various courts in predicate matters and were subsequently apprehended by the Delhi police”.

The ED’s investigation is based on over 30 first information reports (FIRs) registered against the company and its associates for allegedly failing to complete several real estate projects on time and for cheating homebuyers and investors.

The company was taken through Corporate Insolvency Resolution Process proceedings, which culminated in a resolution plan. The National Company Law Tribunal (NCLT) directed that some assets be handed over to the homebuyers, while the rest were to be liquidated.

Most of the homebuyers had reportedly invested their funds before 2010. “The case stems from the fraudulent mobilisation of homebuyers/investors funds by the accused persons through Universal Buildwell Pvt. Ltd., based on false promises of completing the project by 2010 and also promised assured returns in commercial projects,” the ED said.

According to the agency, data provided by the resolution professional showed that the company, through its promoters, had collected more than ₹1,000 crore over 12 years across eight projects in Gurugram and Faridabad.

These projects include Universal Trade Tower, Universal Greens, Universal Business Park, Aura, Universal Square, Market Square, The Pavillion and Universal Prime. The ED has alleged that only a portion of the collected funds was used for development, while the remaining amounts were diverted for acquiring land and other assets for personal gain.