Ex-Haryana Minister Named in ₹600-Crore Piyush Group Scam: ED Exposes Builder Fraud and Investor Losses
ED charges ex-MLA Mahinder Pratap Singh in money laundering probe linked to Piyush Group projects
Thousands of homebuyers cheated as builders diverted funds, promised returns, and failed to deliver projects
By Our Legal Reporter
New Delhi: January 18, 2026:
The Enforcement Directorate (ED) has intensified its crackdown on real estate fraud in Haryana, naming former minister and ex-MLA Mahinder Pratap Singh in a high-profile money laundering case against the Piyush Group of Companies. The case, which spans multiple districts including Faridabad, Palwal, and Bhiwadi, has exposed how builders allegedly siphoned off crores of rupees from unsuspecting homebuyers and investors. With multiple FIRs filed by the Economic Offences Wing (EOW) and the Central Bureau of Investigation (CBI), the scandal has shaken public trust in the real estate sector and raised questions about political-business nexus in Haryana.
Also Read: AI Manipulation of Photos and Videos: How Fake Refund Claims Expose Legal Gaps in India
Role of the Ex-MLA
- Mahinder Pratap Singh, a former Haryana minister, has been accused of being a partner in a joint-venture commercial project linked to the Piyush Group.
- According to ED officials, this project was allegedly constructed using funds diverted from homebuyers of other projects, violating trust and financial norms.
- Singh’s involvement highlights how political figures may have provided legitimacy to fraudulent ventures, making it easier for builders to attract investments.
- His name surfaced during ED raids at 12 locations, including properties of promoters, directors, and resolution professionals associated with the group.
ED Charges Against Piyush Group
The ED’s investigation under the Prevention of Money Laundering Act (PMLA), 2002 has revealed:
- Diversion of funds: Money collected from homebuyers was allegedly siphoned off to finance unrelated projects.
- Assured returns scam: Builders promised investors guaranteed returns and timely possession of flats but failed to deliver.
- Forgery and conspiracy: FIRs filed by EOW and CBI accuse promoters of cheating, criminal breach of trust, forgery, and conspiracy.
- Seizures: ED raids led to recovery of incriminating documents, property deeds, books of accounts, digital records, cash, jewellery, and bank balances worth over ₹5 crore.
- Scale of fraud: The scam is estimated at ₹600 crore, affecting more than 2,000 homebuyers across Haryana.
Also Read: Passport Rules for Children and Dependents in India: Lessons from Kerala’s Premature Baby Case
How Builders Defrauded Investors
The Piyush Group allegedly adopted multiple fraudulent tactics:
- False promises: Buyers were lured with advertisements of luxury housing and commercial projects with assured possession dates.
- Delayed projects: Despite collecting substantial booking amounts, projects remained incomplete or abandoned.
- Diversion of funds: Instead of using money for construction, funds were allegedly diverted to other ventures, including joint projects with influential partners.
- Investor exploitation: Builders offered “assured returns” schemes, promising fixed monthly income, but defaulted once funds dried up.
- Manipulation of records: ED found evidence of forged documents and manipulated accounts to hide financial irregularities.
Impact on Homebuyers and Investors
- Thousands of families who invested their life savings in Piyush Group projects have been left without homes.
- Many buyers are now burdened with loans, paying EMIs for properties that were never delivered.
- Investors who trusted the “assured returns” scheme have lost crores, with little hope of recovery.
- The scandal has created widespread panic among real estate buyers in Haryana, further denting confidence in the sector.
Political and Legal Dimensions
- The involvement of an ex-MLA has added a political dimension to the case, raising concerns about political patronage in fraudulent businesses.
- ED’s action is based on multiple FIRs filed by EOW and CBI, making this one of the largest coordinated probes in Haryana’s real estate sector.
- Legal proceedings are expected to intensify, with ED likely to file prosecution complaints under PMLA.
Also Read: Credit Card Rewards Under Tax Lens: How Spending Can Trigger Income Tax Notices in India
Broader Implications
- For real estate sector: The case highlights systemic issues of builder fraud, weak regulation, and lack of accountability.
- For governance: Political-business nexus in such scams undermines public trust in institutions.
- For investors: The scandal is a reminder of the risks of investing in projects without proper due diligence.
Conclusion
The money laundering probe against the Piyush Group and the naming of ex-MLA Mahinder Pratap Singh marks a turning point in Haryana’s real estate fraud investigations. With thousands of investors cheated and crores siphoned off, the case underscores the urgent need for stricter regulation, transparent builder practices, and accountability of political figures involved in commercial ventures. As ED continues its probe, the scandal serves as a cautionary tale for homebuyers across India.
Suggested Keywords (SEO + ChatGPT Optimization)
- Ex-Haryana minister money laundering case
- Mahinder Pratap Singh ED probe
- Piyush Group real estate fraud
- Haryana builder scam 2026
- ED raids Piyush Group Faridabad Palwal Bhiwadi
- Homebuyers cheated by builders Haryana
- Assured returns fraud real estate India
- Political involvement in builder scams
- ED investigation under PMLA Haryana
- Real estate fraud cases India
Also Read: Hindustan Unilever Faces ₹1,560 Crore Tax Demand: What It Means for Investors and FMCG Sector