The FIR filed against developer for Rs 217 crore housing fraud case in Gurgaon has raised serious concerns about homebuyer rights and fund management in India’s real estate sector. The Economic Offences Wing (EOW) of Delhi Police registered a case against Ocean Seven Buildtech Pvt. Ltd. (OSB) and its Managing Director, Swaraj Singh Yadav, over allegations of cheating buyers and misusing project funds.
The Expressway Towers project started in December 2016 under the Pradhan Mantri Awas Yojana (Urban) to provide affordable housing. It spans 7.5 acres and includes 1,089 flats with one-bedroom and two-bedroom options. Buyers were promised possession by 2022. However, OSB has collected Rs 217 crore but completed only a small portion of construction, leaving many families waiting.
The first complaint came from Elan Kumaran Subramanian, joined by 25 other buyers facing similar delays. On October 15, 2023, the EOW filed the FIR under sections of the Indian Penal Code (IPC): 406 (criminal breach of trust), 409 (breach of trust by agent), 420 (cheating), and 120B (criminal conspiracy). Buyers claim that OSB diverted funds meant for construction to other purposes, breaking the trust of those who invested.
Adding to concerns, Axis Bank reported unauthorized withdrawals from the project’s escrow account, where buyer payments were supposed to remain secure. H-RERA meetings in Gurgaon discussed these findings, which increased suspicion of financial wrongdoing. Buyers also accused OSB of selling flats twice, giving false progress updates, and withholding accurate information.
Angry buyers now demand that authorities freeze the company’s accounts and conduct a forensic audit of all transactions. They want accountability for both their financial and emotional losses.
When asked about the allegations, OSB denied wrongdoing. A company spokesperson called the complaints “false and malicious.” They said construction delays occurred due to Covid-19 restrictions and National Green Tribunal (NGT) orders. The developer insisted that over 90% of the work is complete and promised to deliver flats by March 2026. OSB clarified that Rs 180 crore came from allottees and all External Development Charges (EDC) were paid to the Department of Town and Country Planning (DTCP).
OSB also claimed that a group pretending to represent buyers tried to extort Rs 5 crore. The company filed a police complaint for protection against this group.
Experts say this case reflects a wider problem in India’s real estate market. Delays, fraud, and mismanagement continue to affect buyers in Haryana, Punjab, and other states. Even with reforms like RERA, buyers often struggle to secure justice when developers fail to meet commitments.
Real estate represents security and stability for families. Cases like Expressway Towers damage public confidence and show the need for stricter oversight, timely delivery, and stronger legal protections for homebuyers.
In conclusion, the FIR filed against developer for Rs 217 crore housing fraud highlights serious issues in the housing sector. However, authorities must act quickly to protect thousands of affected buyers and restore trust in real estate projects.
