Report Builders Who Insist On Cash, ED Tells Homebuyers

The agency also advised homebuyers to verify title documents and other records relating to properties before making payments and not rely solely on oral promises made by brokers.

The ED issued the advisory while announcing the provisional attachment of assets worth Rs 129.80 crore belonging to an Ahmedabad-based real estate company and its promoters in an alleged homebuyers' fraud case.

"Homebuyers and investors are advised to verify RERA registration, statutory approvals, title documents, land records and encumbrance details before making payment. They should check whether the property is mortgaged or involved in any dispute," the central financial agency said.

"Buyers should not rely only on oral promises, booking forms, notarised papers or assurances from brokers," it said. The agency advised buyers to insist on a proper agreement for sale or sale deed.

"If a builder refuses to share documents, insists on cash, delays registered documents, fails to refund money or tries to transfer project land to third parties, the matter should be reported to law enforcement authorities, RERA and other competent authorities," it said.

The agency said promises of very high returns, guaranteed buyback or unusual discounts should be treated as "warning signs".

RERA stands for Real Estate Regulatory Authority and came into existence under the Real Estate (Regulation and Development) Act, 2016, which aims to protect homebuyers and boost real estate investment.

The ED said it remained "committed" to tracing and restraining proceeds of crime and "protecting" the interests of victims (homebuyers) and legitimate claimants by confiscating the assets of accused builders under the anti-money laundering law and subsequently restoring or restituting them to homebuyers.

The attachment order against the Ahmedabad builder was issued on August 14 under the Prevention of Money Laundering Act in a case involving Keshav Narayan Group and its linked persons, including Ronak Ravjibhai Sonani and Vipulbhai Gordhanbhai Gangani.

The ED registered the case based on multiple FIRs and chargesheets filed by Ahmedabad Police against the accused.

The agency alleged that the accused "cheated" ordinary homebuyers, small investors, traders and middle-class families by projecting their real estate schemes as genuine projects.

The accused offered flats and shops at attractive pre-launch prices and " promised" assured returns ranging from 54 to 100 per cent, the ED said.

The agency said the projects were marketed without mandatory approvals such as RERA registration.

"The attachment has been made to stop further sale, transfer or concealment of these properties.

"It will help protect the interests of defrauded homebuyers and investors," the agency said.