ED Alleges Gurugram Developer Diverted ₹205 Crore of Homebuyer Funds to Sri Lanka Hotel
The ED conducted raids and attached assets including the Colombo project and undeveloped lands in Gurugram’s Sectors 63, 65, and 70, along with several properties in Delhi.
The Enforcement Directorate (ED) is probing Krrish Realtech, a Gurugram-based real estate company, and its promoter Amit Katyal, for allegedly collecting over ₹500 crore from more than 400 homebuyers under the pretext of assigning plots—without holding legitimate licenses—and diverting approximately ₹205 crore toward a hotel project in Colombo, Sri Lanka, instead of delivering promised housing plots.
According to the chargesheet filed by the ED in July, buyers were intentionally misled into booking plots that the company had no intention of handing over. The allocated funds were siphoned into personal accounts and an intricate network of shell companies controlled by Katyal and his family. These shell entities used dummy directors and acquired assets including land and flats.
Investigators allege that a shell company named Mahadev Infrastructure was used to channel ₹205 crore into a real estate-cum-hotel venture in Colombo. Additional sums were routed to firms including Good Earth Pvt. Ltd., The One Transworks Square Pvt. Ltd., and Heaven Tradelink Pvt. Ltd., as well as properties registered in the names of family members and employees. Katyal’s son, who holds citizenship in Saint Kitts and Nevis, has been identified as the beneficial owner of several Sri Lanka-based assets.
Further investigation referenced copies of FIRs lodged with Delhi and Gurugram Economic Offences Wings. The ED conducted raids and attached assets including the Colombo project and undeveloped lands in Gurugram’s Sectors 63, 65, and 70, along with several properties in Delhi. The probe revealed that Katyal and his associates attempted to mislead genuine homebuyers by allotting plots to multiple investors, creating fictitious creditors to file a pre-packaged insolvency petition before the National Company Law Tribunal (NCLT), and falsifying plot buyer lists submitted to a Supreme Court-appointed referee. Once buyers raised objections, the insolvency application was withdrawn.
The case adds to a series of high-profile real estate fraud investigations in the National Capital Region, with authorities continuing to examine the alleged diversion of funds.