PMAY ₹222 Crore Fraud: ED to Chargesheet Ocean Seven Buildtech MD Swaraj Singh for Cheating Homebuyers
ED Alleges Cancellation–Resale Scam and Diversion of Funds Through Shell Companies
Case Highlights Weaknesses in PMAY Implementation and Need for Stronger Oversight
By Our Legal Reporter
New Delhi: December 08, 2025:
The Enforcement Directorate (ED) is set to file a chargesheet against Ocean Seven Buildtech Pvt Ltd (OSBPL), a Gurugram-based real estate company, and its Managing Director Swaraj Singh Yadav in a ₹222 crore fraud case linked to the Pradhan Mantri Awas Yojana (PMAY). The case has exposed serious irregularities in the implementation of India’s flagship affordable housing scheme, which was designed to provide homes to economically weaker sections.
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The ED alleges that the company cheated homebuyers, laundered funds, and violated PMAY guidelines, undermining the very purpose of the scheme.
Background of the Case
- PMAY Objective: Launched in 2015, PMAY aims to provide affordable housing to low-income families.
- Ocean Seven Buildtech’s Role: The company was allotted projects under PMAY but allegedly engaged in fraudulent practices.
- ED Arrest: Swaraj Singh Yadav was arrested on November 13, 2025, and remains in judicial custody.
- Court Custody: Delhi’s Patiala House Court granted 14 days’ custody to the ED for interrogation.
Allegations Against Ocean Seven Buildtech
The ED investigation revealed multiple fraudulent practices:
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- Cancellation–Resale Scam: Flats allotted under PMAY were cancelled and resold at higher prices.
- Cash Premiums: Buyers were allegedly forced to pay cash premiums over and above official prices.
- Diversion of Funds: Escrow proceeds were diverted into shell companies to launder money.
- Cheating Homebuyers: Many buyers were denied possession despite full payment.
ED’s Findings
- Money Laundering: Over ₹222 crore was allegedly laundered through dummy entities.
- Asset Diversion: Properties and funds were moved or sold to evade regulatory action.
- Violation of PMAY Norms: The company’s actions went against the scheme’s core aim of affordable housing.
- Chargesheet Preparation: The ED is finalizing its chargesheet to be filed in court soon.
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Wider Legal Context
- Prevention of Money Laundering Act (PMLA): The case is being investigated under PMLA provisions.
- Consumer Protection: Fraudulent practices violate homebuyers’ rights under the Consumer Protection Act.
- PMAY Oversight: The case highlights gaps in monitoring and enforcement of PMAY projects.
- Judicial Precedents: Courts have previously ordered strict action against builders for cheating homebuyers in similar cases.
Implications of the Case
- For Homebuyers: Reinforces the need for vigilance when investing in housing projects.
- For Real Estate Sector: Sends a strong message that fraudulent practices will attract strict penalties.
- For Government: Highlights the need for stronger oversight of PMAY projects to prevent misuse.
- For Judiciary: Demonstrates proactive enforcement of consumer rights and anti-money laundering laws.
Industry and Expert Reactions
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- Legal Experts: Welcomed the ED’s action, noting that it strengthens accountability in real estate.
- Homebuyers: Expressed relief that authorities are taking action but demanded compensation and possession.
- Policy Analysts: Pointed out that the case exposes systemic weaknesses in PMAY implementation.
- Public Opinion: Many criticized the misuse of a welfare scheme meant for the poor, calling for stricter monitoring.
Conclusion
The ₹222 crore PMAY fraud case against Ocean Seven Buildtech is one of the biggest housing scams linked to India’s affordable housing mission. By preparing to file a chargesheet against Swaraj Singh Yadav, the ED has sent a clear signal that misuse of welfare schemes will not be tolerated.
This case underscores the urgent need for stronger oversight, transparency, and accountability in PMAY projects to ensure that the scheme fulfils its promise of providing homes to those who need them most.
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