“SRS Group Promoters Declared Fugitive Economic Offenders in ₹2,200 Crore Scam by Gurugram Special Court”
ED moves to confiscate properties of absconding promoters
Court says investors defrauded through Ponzi-style schemes and fund diversion
By Our Legal Reporter
New Delhi: January 20, 2026:
In one of the biggest real estate scams in North India, the promoters of SRS Group, a Faridabad-based conglomerate, have been declared Fugitive Economic Offenders (FEOs) by a special court under the Prevention of Money Laundering Act (PMLA) in Gurugram. The Enforcement Directorate (ED) secured this declaration against Jitender Kumar Garg and Sunil Jindal, who allegedly defrauded investors, banks, and depositors to the tune of ₹2,200 crore.
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The ruling, delivered on January 15, 2026, marks a decisive step in India’s fight against financial fugitives. With this declaration, the ED can now initiate confiscation of their properties under the Fugitive Economic Offenders Act, 2018 (FEOA).
How the Builders Allegedly Defrauded Investors
The scam unfolded through a series of fraudulent practices:
- Ponzi-style schemes: Investors were lured with promises of high returns on deposits and real estate projects.
- Diversion of funds: Money collected from investors was allegedly diverted to shell companies and personal accounts.
- Default on repayments: Despite collecting huge sums, the promoters failed to deliver projects or return money.
- Bank frauds: Loans were taken from banks using inflated valuations and false documents, later defaulted.
- Multi-company network: The promoters operated through multiple companies under the SRS Group umbrella, making it difficult to trace funds.
According to ED investigations, thousands of small investors, including middle-class families, were trapped in the scheme, losing their life savings.
What the Fugitive Economic Offenders Act Says
The Fugitive Economic Offenders Act (FEOA), 2018 was enacted to deal with high-value economic offenders who flee India to avoid prosecution.
Key provisions include:
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- Threshold: Applies to offences involving ₹100 crore or more.
- Declaration as FEO: A special court can declare an accused as a Fugitive Economic Offender if they evade summons and remain abroad.
- Confiscation of property: Once declared, the ED can confiscate all domestic and overseas assets of the offender.
- No civil claims: FEOs lose the right to pursue or defend civil claims in Indian courts.
This law was introduced after high-profile cases like Nirav Modi and Vijay Mallya, ensuring that absconders cannot enjoy their wealth while evading justice.
Background of SRS Group and Its Promoters
The SRS Group, founded in Faridabad, Haryana, grew rapidly in the 2000s, diversifying into:
- Real estate: Residential and commercial projects in NCR.
- Retail: Shopping malls, multiplexes, and consumer goods.
- Finance: Investment schemes promising high returns.
- Hospitality: Hotels and food chains.
Promoters:
- Jitender Kumar Garg: Based in Georgia, he was one of the key directors of SRS Group companies.
- Sunil Jindal: Based in Dubai, he managed multiple ventures under the group and was instrumental in raising funds.
- Praveen Kumar Kapoor: Another director, deported to India in November 2025 after a Red Corner Notice.
The group’s flashy expansion masked deep financial irregularities. By 2018, complaints from investors and banks began surfacing, leading to multiple FIRs filed by the Delhi Police, Haryana Police, and CBI.
Court Proceedings and ED Action
- The ED filed an application before the Gurugram Special Court under PMLA seeking FEO status for Garg, Jindal, and Kapoor.
- On June 6, 2025, they were declared proclaimed offenders.
- On January 15, 2026, Garg and Jindal were formally declared Fugitive Economic Offenders.
- The ED has now begun proceedings to confiscate their properties, including real estate, bank accounts, and investments.
Impact on Investors and Real Estate Sector
- Investors: Thousands of depositors and homebuyers remain stuck, with little hope of recovering their money.
- Real estate credibility: The scam has dented trust in NCR’s real estate sector, already plagued by delays and defaults.
- Legal precedent: The case strengthens the use of FEOA against absconding builders and promoters.
Expert Reactions
- Legal Experts: Welcomed the ruling as a strong deterrent against financial fugitives.
- Investors: Expressed relief that the law is finally catching up with absconders, though recovery remains uncertain.
- Policy Analysts: Noted that the case highlights the need for stricter regulation of real estate and deposit schemes.
Conclusion
The declaration of SRS Group promoters as Fugitive Economic Offenders is a landmark in India’s fight against financial fraud. It exposes how builders allegedly defrauded investors through false promises and fund diversion, while also showcasing the power of the Fugitive Economic Offenders Act, 2018.
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For thousands of investors, the road to recovery may still be long, but the ruling ensures that absconding promoters cannot enjoy their ill-gotten wealth abroad. The case also serves as a warning to other real estate groups and financial operators that fraudulent practices will eventually face the full force of law.
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Sources: India Today, The Hans India, Indian Express, Times Now News.
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