ED searches Nagpur builder Prayag Developers, seizes Rs 1.95 crore cash
The ED has searched two Nagpur premises linked to the proprietor of Prayag Developers & Builders, seizing Rs 1.95 crore in cash; it alleges mortgaged flats were sold to buyers without disclosure.
Key points
- The ED searched two locations in Nagpur on 26 October 2026 linked to the proprietor of Prayag Developers & Builders under the PMLA.
- The ED seized Rs 1.95 crore in cash and froze bank balances of more than Rs 40 lakh, and alleges a landowner suffered a wrongful loss of Rs 9.4 crore.
- The ED alleges flats mortgaged to DHFL were sold without disclosing the mortgage; the accused is presumed innocent until proven guilty.
Photo: Blogtrepreneur / Wikimedia Commons, CC BY 2.0 (cropped). Representational image.
The Enforcement Directorate (ED) said on 31 October 2026 that it searched two locations in Nagpur district on 26 October 2026 under the Prevention of Money Laundering Act (PMLA), 2002, linked to the proprietor of Prayag Developers & Builders. The ED seized Rs 1.95 crore in cash, documents and digital devices, froze bank balances of more than Rs 40 lakh and identified several properties it suspects were bought with proceeds of crime.
What Happened
The ED's case is based on FIRs registered at Ajni police station and Ranapratapnagar police station in Nagpur under Sections 418 and 420 of the IPC.
In one instance, according to the ED, the builder signed a development agreement for land owned by a senior citizen widow, under which he had to pay her Rs 1.75 crore and allot her 14 flats. The ED alleges that he cancelled the deed earmarking the flats without her knowledge or consent and sold them to third parties for Rs 8.93 crore, and withheld Rs 45 lakh due under the agreement. The ED puts her total wrongful loss at Rs 9.4 crore.
In the Divya Prayag Apartment project, the ED said, 22 flats had been mortgaged to Dewan Housing Finance Corporation Limited (DHFL) against a project loan of Rs 22 crore, of which Rs 11 crore was disbursed. The ED alleges the flats were sold without a no-objection certificate from the lender and without telling buyers about the mortgage, and that a false affidavit hiding the mortgage was given to a bank for a home loan. Dues of Rs 12.84 crore were later reported and proceedings under the SARFAESI Act, which lets lenders take over secured property, were started, the ED said. The ED suspects this caused wrongful loss to flat buyers.
What It Means
For homebuyers, the case shows why it matters whether a flat is already mortgaged to a lender: in this project, according to the ED, the lender's dues went unpaid and recovery proceedings followed. The ED said further investigation is in progress.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
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