Policy
ED Flags Red Flags in Property Deals, Warns Homebuyers
The Enforcement Directorate (ED) has urged homebuyers to verify RERA registration, property documents and approvals before making payments, while reporting builders who demand cash, withhold documents or fail to refund money.
The advisory follows the provisional attachment of assets worth ₹129.80 crore in an alleged real estate fraud case involving an Ahmedabad-based developer and its promoters.
Sources: Official statements, regulatory filings, government documents, company disclosures and credible media reports.
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Mumbai: The Enforcement Directorate (ED) has cautioned homebuyers against property deals involving builders who withhold RERA registration details, demand cash payments or fail to return money.
The agency has asked buyers to verify a project's regulatory approvals and ownership records before making any payment. The warning follows the provisional attachment of assets worth ₹129.80 crore in an alleged real estate fraud case involving an Ahmedabad-based developer and its promoters.
Check Before Investing
The ED advised buyers to examine RERA registration, statutory approvals, title documents, land records and encumbrance details before entering into a transaction.
“Homebuyers and investors are advised to verify RERA registration, statutory approvals, title documents, land records and encumbrance details before making payment,” the ED said.
The agency also urged purchasers to insist on a formal agreement for sale or sale deed, rather than relying on booking forms, notarised papers or verbal assurances from brokers.
Cases involving refusal to provide documents, cash demands, delayed registered paperwork, non-refund of money or attempts to transfer project land to third parties should be brought to the notice of law-enforcement agencies, RERA and other competent authorities, the ED said.
₹129.80 Crore Attached
The Ahmedabad Zonal Office of the ED issued the provisional attachment order on August 14 under the Prevention of Money Laundering Act (PMLA). The action concerns Keshav Narayan Group and linked individuals, including Ronak Ravjibhai Sonani and Vipulbhai Gordhanbhai Gangani.
According to the agency, the matter originated from multiple FIRs and chargesheets filed by Ahmedabad Police. The ED alleged that the accused marketed real estate schemes as genuine projects and offered flats and shops at pre-launch prices, along with promised returns ranging from 54 to 100 per cent.
The agency said such offers, particularly very high returns, guaranteed buybacks and unusually large discounts, should be viewed as potential warning signs.
Protecting Homebuyers
The ED said the attached assets would help prevent their further sale, transfer or concealment and assist in protecting the interests of affected homebuyers and investors.
Editorial Insight | Signature Media News
The latest action underlines a basic rule for property buyers: verify first, pay later. A glossy project offer or attractive return cannot replace legal and regulatory checks. For buyers, independent verification of the property's documents and approvals remains the strongest safeguard against costly disputes.
Sources: Official statements, regulatory filings, government documents, company disclosures and credible media reports.
The agency has asked buyers to verify a project's regulatory approvals and ownership records before making any payment. The warning follows the provisional attachment of assets worth ₹129.80 crore in an alleged real estate fraud case involving an Ahmedabad-based developer and its promoters.
Check Before Investing
The ED advised buyers to examine RERA registration, statutory approvals, title documents, land records and encumbrance details before entering into a transaction.
“Homebuyers and investors are advised to verify RERA registration, statutory approvals, title documents, land records and encumbrance details before making payment,” the ED said.
The agency also urged purchasers to insist on a formal agreement for sale or sale deed, rather than relying on booking forms, notarised papers or verbal assurances from brokers.
Cases involving refusal to provide documents, cash demands, delayed registered paperwork, non-refund of money or attempts to transfer project land to third parties should be brought to the notice of law-enforcement agencies, RERA and other competent authorities, the ED said.
₹129.80 Crore Attached
The Ahmedabad Zonal Office of the ED issued the provisional attachment order on August 14 under the Prevention of Money Laundering Act (PMLA). The action concerns Keshav Narayan Group and linked individuals, including Ronak Ravjibhai Sonani and Vipulbhai Gordhanbhai Gangani.
According to the agency, the matter originated from multiple FIRs and chargesheets filed by Ahmedabad Police. The ED alleged that the accused marketed real estate schemes as genuine projects and offered flats and shops at pre-launch prices, along with promised returns ranging from 54 to 100 per cent.
The agency said such offers, particularly very high returns, guaranteed buybacks and unusually large discounts, should be viewed as potential warning signs.
Protecting Homebuyers
The ED said the attached assets would help prevent their further sale, transfer or concealment and assist in protecting the interests of affected homebuyers and investors.
Editorial Insight | Signature Media News
The latest action underlines a basic rule for property buyers: verify first, pay later. A glossy project offer or attractive return cannot replace legal and regulatory checks. For buyers, independent verification of the property's documents and approvals remains the strongest safeguard against costly disputes.
Sources: Official statements, regulatory filings, government documents, company disclosures and credible media reports.
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