New Delhi, Aug 1: The Directorate of Enforcement (ED), Gurugram Zonal Office, has conducted fresh search operations under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, on July 29, 2026, at the Delhi premises of M/s M3M India Pvt. Ltd., M/s M3M India Infrastructure Pvt. Ltd., and eight associated entities and their promoters, in connection with an ongoing money laundering investigation linked to the IREO Group real estate project fraud.
The ED said the investigation stems from an FIR registered by the Economic Offences Wing (EOW), Delhi Police, against M/s IREO Pvt. Ltd. (now M3M), M/s IREO Infrastructure Pvt. Ltd. (now M3M Infrastructure Pvt. Ltd.), their promoters Basant Bansal, Roop Bansal, Inderdeep Singh, Pradeep Sharma, Avnindra Sethi, and others. The accused have been charged under various provisions of the IPC for allegedly cheating homebuyers, criminal conspiracy, forgery, and diversion of funds.
According to the ED, the accused allegedly collected money from homebuyers for real estate projects but diverted the funds to unrelated entities and purposes instead of utilising them for the intended projects. The complaint also alleges that investors were cheated by misusing the money collected from them.
The investigation further revealed that M3M Infrastructure Pvt. Ltd. allegedly diverted funds received from buyers of its “Escalade Project” to settle liabilities arising from other real estate ventures. The agency stated that the company had accepted bookings for the project in 2011 and even executed Buyer Builder Agreements (BBAs) with several purchasers. However, despite the passage of nearly 15 years, the company neither handed over possession nor executed conveyance deeds in favour of the buyers.
The ED alleged that after the original allotment, the company persuaded buyers to convert their bookings into another project by offering assurances of early possession. Even after several extensions, the commitments were allegedly not honoured. Subsequently, the company reportedly informed buyers that the BBAs had been cancelled and their booking amounts would be adjusted in a new project through Memorandums of Understanding (MoUs). The project, however, remains incomplete.
So far, the ED investigation has found that M3M Infrastructure Pvt. Ltd. allegedly diverted ₹63 crore received from buyers of the Escalade Project through a web of shell companies. The agency is continuing to investigate the role of various builders, associated entities, and individuals in the alleged money laundering and fund diversion.
During the searches, the ED seized several incriminating documents, including records relating to the entities and promoters, audited financial statements, digital devices, details of cash transactions, and investment-related documents.
The agency also seized cash worth ₹50.50 lakh and three luxury vehicles during the operation.
The investigation is continuing.(KNC)
