ED arrests OSBPL MD on money laundering charges, sent to 14-day custody

The Enforcement Directorate has arrested Swaraj Singh Yadav, the managing director of Ocean Seven Buildtech Private Limited (OSBPL), on money laundering charges by allegedly diverting funds collected from homebuyers across multiple housing projects.

The ED conducted searches at nine locations in and around Delhi and other places, following which it arrested Mr. Yadav, who is “the key person and managing director of OSBPL for his alleged role in the laundering and diversion of funds collected from homebuyers across multiple projects”. The agency also seized ₹86 lakh in cash, which was in the custody of his relative and was from the sale of a land parcel in Rajasthan.

According to the ED, Mr. Yadav fraudulently diverted and laundered homebuyers’ funds collected under Pradhan Mantri Awas Yojana (PMAY) projects through cancellation and resale of units at inflated prices, collection of substantial cash premiums, and diversion of escrow proceeds into shell entities.

“The ED investigation has further revealed a pattern of accelerated liquidation of personal and company-held assets by Swaraj Singh Yadav across Gurugram, Maharashtra, and Rajasthan in the recent past to convert illicit gains into easily disposable form. His wife and children have relocated to the USA, and such accelerated sales indicate a clear attempt to dissipate assets and evade legal action,” it said.

The agency alleged that the modus operandi involved generation of funds by cancelling allotments of flats under the PMAY scheme on the “false pretexts” and reselling the same units at higher prices without refunding earlier payments, thereby collecting dual proceeds.

“He also controlled the cash-based premium collection over and above the money received through banking channels in such resale. A similar cash-driven mechanism was followed in the sale of parking areas, where only a nominal amount was routed through the company’s bank, and the remaining premium was taken in cash as per his instructions,” said the agency, adding that a larger investigation into the alleged misuse of escrow funds and other violations were under way.

The arrested accused was produced before a Delhi court “at midnight in strict compliance with the directions of the Supreme Court”. The proceedings before the judge started at 2.25 a.m. on Friday, and passover was granted to enable the accused to have adequate legal assistance.

“The ED placed detailed submissions before the learned court, and the defence was also accorded full opportunity to be heard which culminated in the remand order at 6.10 a.m. The judge was pleased to grant a patient and fair hearing to both sides after giving adequate time,” it said. After considering the submissions of both sides, the court sent the accused to ED custody for 14 days.