ED asks homebuyers to report builders refusing RERA details or demanding cash

The Enforcement Directorate (ED) has asked homebuyers to report builders who refuse to provide RERA registration details, delay refunds or insist on cash payments during property transactions.

The agency also urged buyers to verify property title documents, statutory approvals, land records and encumbrance details before making payments. The advice came in a statement issued after the ED provisionally attached assets worth Rs 129.80 crore belonging to an Ahmedabad-based real estate company and its promoters in an alleged homebuyers' fraud case, according to ETRealty, which carried the report based on PTI.

ED warns buyers against relying on verbal promises

The ED said buyers should not rely solely on oral promises made by property brokers. It advised them to insist on a proper agreement for sale or sale deed before completing a transaction.

The agency also said buyers should check whether the property they plan to purchase is mortgaged or involved in a dispute. RERA registration, statutory approvals and title-related records should be verified before any payment is made, it said.

The warning extends to booking forms and notarised documents, which the agency said should not be treated as substitutes for proper registered transaction documents.

According to the ED, buyers should report a builder if the company refuses to share relevant documents, demands cash, delays registered documents, fails to return money or attempts to transfer project land to third parties. Complaints can be made to law enforcement agencies, RERA and other competent authorities, the agency said.

High returns and unusual discounts flagged

The ED also warned buyers about property schemes promising very high returns, guaranteed buybacks or unusually large discounts.

The agency's latest advisory followed an investigation involving the Keshav Narayan Group and linked individuals in Ahmedabad. The ED said the case arose from multiple FIRs and chargesheets filed by Ahmedabad Police against the accused.

According to the agency, the accused allegedly marketed real estate schemes as genuine projects and offered flats and shops at attractive pre-launch prices. The ED alleged that buyers and investors were promised assured returns ranging from 54% to 100%, while the projects were marketed without mandatory approvals such as RERA registration.

The ED issued the attachment order on August 14 under the Prevention of Money Laundering Act. It said the action was intended to prevent further sale, transfer or concealment of the attached properties and protect the interests of alleged victims.

What homebuyers should check

For buyers, the ED's warning boils down to a few basic safeguards: verify the project's RERA registration, check approvals and title records, confirm whether the property carries a mortgage or dispute, and insist on a proper agreement for sale or sale deed.

The agency also said that a builder's refusal to provide documents or insistence on cash should be treated as a reason to report the matter rather than proceed with the transaction.

The ED said it remains committed to tracing and restraining alleged proceeds of crime and protecting the interests of homebuyers and other legitimate claimants through action under the anti-money laundering law.