ED searches Bengaluru builder Aryan Hometec over alleged Rs 90 crore diversion
The ED's Bangalore office searched three premises linked to Aryan Hometec Private Limited, alleging Rs 90 crore collected from homebuyers for two projects was siphoned off.
Key points
- The ED's Bangalore Zonal Office searched three premises connected to Aryan Hometec Private Limited and its directors under money laundering law.
- The ED alleges Rs 90 crore meant for building Aryan Fountain Square and Aryan Golden Arena was siphoned off by the company.
- The ED says incriminating documents were seized and its investigation is continuing; the allegations are yet to be tested in court.
The Enforcement Directorate (ED) has searched three premises connected to Aryan Hometec Private Limited, a Bengaluru real estate company, and its two directors in a money laundering investigation. The ED alleges that Rs 90 crore collected for two housing projects was siphoned off, and said in a release dated 4 November 2026 that incriminating documents were seized.
What Happened
According to the ED's Bangalore Zonal Office, its investigation began on the basis of several police FIRs (first information reports) filed after complaints from a land owner, homebuyers and financial institutions against the company and its directors. In some of these FIRs the police had filed a closure report saying the accused could not be traced, the ED said, and it located them before the searches.
The ED said the company had entered into a joint development agreement with the land owner, under which the apartments and land were to be shared in the ratio of 63% and 37%. The projects were Aryan Fountain Square and Aryan Golden Arena. The ED alleges the company did not build the apartments allotted to the land owner and made the land owner a guarantor for loans from financial institutions, which the land owner largely repaid to keep the land.
The ED further alleges that the directors cheated homebuyers and investors by siphoning off money collected for the projects, a total of Rs 90 crore, and diverted large amounts to family members and entities they own.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
What It Means
For homebuyers in these two projects, an ED case does not by itself return their money; it is a criminal investigation into how the funds were used. Buyers with a complaint can approach a consumer commission through the National Consumer Helpline (1915) or e-Daakhil.
The case is also a reminder that in a joint development agreement, a land owner who stands guarantor for a builder's loans can end up repaying them. The ED says its investigation is continuing.
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
Named in this report, or spotted an error? Corrections and responses: editor@oquilia.com. We correct errors promptly and record responses from named parties.
Sources & Citations
- Enforcement Directorate press release — Enforcement Directorate