Delhi court sends realtor to 14-day ED custody in PMAY scam case

New Delhi, Nov 14 (PTI) A Delhi court on Friday allowed the ED 14 days' custody of Gurugram builder and director of the Ocean Seven Buildtech Pvt Ltd (OSBPL), Swaraj Singh Yadav, in an alleged money-laundering case.

Yadav was produced at the residence of Additional Sessions Judge Shefali Barnala Tandon around 2:25 am on Friday after being arrested in a money-laundering case linked to allotments made under Pradhan Mantri Awas Yojana (PMAY), the Union government’s flagship scheme.

The agency said he was brought to the judge’s residence at the “odd hour” because of the directions of the constitutional courts mandating an arrestee’s production within 24 hours.

PMAY was launched on June 25, 2015, to provide pucca houses to all eligible urban households by 2022, when the nation completed 75 years of its independence.

Special Public Prosecutor Simon Benjamin said that the builder was allegedly involved in the cancellation of PMAY flats (originally priced at Rs 26.5 lakh) allotments and reselling them at double the price, ranging from Rs 40-50 lakh.

The prosecutor also alleged that Yadav had been involved in duping over thousands of home buyers across locations, including Mumbai, Jaipur and Gurugram.

He said the accused withdrew funds from his company’s escrow account (account managed by a third party that holds funds) and transferred them to some associated companies.

The agency further alleged that the realtor diverted Rs 222 crore for purchasing personal assets, including real estate.

Noting the submissions, the court said, “The perusal of grounds of arrest reveals that there exists a grave apprehension that arrestee Swaraj Singh Yadav may attempt to abscond and evade criminal proceedings and financial liabilities.” It said the overseas residence of his immediate family members and the reported diversion of funds abroad substantially increase the accused’s flight risk.

The court noted that the custodial interrogation of the realtor was necessary for further investigation in the case to “establish his active role in the commission of the offence of money laundering.” It said, “By way of present application, investigating officer (IO) seeks 14 days ED custody of the arrestee for interrogation to ascertain the role of other alleged/suspected/ beneficiary/ accomplice persons involved in the above said laundering of proceeds of crime and also to unearth the further proceeds of crime.” Noting the ED's plea, the court said his custodial interrogation was also needed to reveal crucial evidence related to the proceeds of crime and other persons involved, besides identifying the complete modus operandi of the offence.

“ED is granted 14 days' custody of the arrestee till November 28,” the court said. PTI SKM MNR MNR MNK MNK