Realtor held in money-laundering case linked to flagship PM Awas Yojana. What was the scam?

ASJ Tandon said in her order, “Even perusal of ground 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. He has confirmed that his wife, Smt. Sunita Swaraj, relocated to the United States of America (USA) in August 2025 and is currently residing at Harvard University, Boston, Massachusetts.”

“His younger daughter and son are pursuing graduation at Trinity College, Hartford, Connecticut, USA. The overseas residence of his immediate family members and the reported diversion of funds abroad substantially increase the flight risk associated with him. His custodial interrogation is necessary for the purpose of confronting him with the statements of various individuals…,” she added.

The PM Awas Yojana, a flagship scheme of the Government of India implemented by Ministry of Housing and Urban Affairs (MoHUA), was launched on June 25, 2015, to address urban housing shortage among the economically weaker sections, lower and middle income groups and slum dwellers by ensuring a pucca house to all eligible urban households.

OSBPL had launched the Gurgaon project, spread across 7.5 acres, in December 2016 under the PMAY (Urban). It remained incomplete despite collecting Rs 217 crore from over 1,000 homebuyers.

According to the ED, Yadav and OSBPL are allegedly involved in a nation-wide money laundering scam since 2006, “duping” over thousands of buyers across India in Mumbai, Jaipur, Kotputli and Gurgaon.

While seeking his custody for further investigation, the ED, represented by Special Public Prosecutor Simon Benjamin, outlined Yadav’s alleged modus operandi.

As per the agency, Yadav “fraudulently cancelled” the PM Awas Yojana allotments of flats — originally priced at Rs 26.5 lakh — “under the pretext of non-payment” and subsequently re-sold them at a premium price (entirely in cash) ranging between Rs 40 and Rs 50 lakh. This re-sale was executed without refunding the amount paid by the previous customers, ensuring the collection of dual payments against the same unit, the agency claimed.

It also said the builder had allegedly withdrawn funds deposited by homebuyers within 24-48 hours from the OSBPL Escrow accounts and transferred them to “associated entities for layering and integrating funds”.

Yadav, against whom multiple FIRs have been lodged by various agencies, was called “the central figure directing the siphoning of funds from Escrow accounts into various shell companies” by the ED.

The counsel of the accused, however, submitted that the majority of FIRs which have been relied upon by the ED as the predicate offence have been settled, “one of them is pending for quashing”, and in the other cases, the flats are ready.

The central probe agency also claimed that funds worth Rs 222 crore were diverted by OSBPL and its associated persons for purchasing personal assets, including real estate in India — 500 acres in Maharashtra, 100 acres on Pune Alibag Road, Sai Rupa Resorts in Tirthan Valley, Himachal Pradesh — and land in Boston, USA.

During search operations, the ED also claimed it recovered Rs 86 lakh from Yadav’s brother-in-law’s home, who confirmed to them that the cash belonged to Yadav “who kept it there for safe keeping”.

According to the agency, Yadav has been “rapidly liquidating both his personal and company-held assets”, including a flat in Gurgaon, 40 acres of land in Maharashtra and 15 acres of land in Jaipur.