Haryana Homebuyers Stranded as Piyush Group Projects Stall Amid Fund Diversion Allegations
More than 1,500 homebuyers across multiple cities in Haryana have been left waiting indefinitely for possession of their promised homes, as several housing projects by Piyush Group remain incomplete for years. Investigations reveal that funds collected from these buyers were allegedly diverted into fresh land investments instead of being used to finish the residential units.
Alleged Financial Irregularities and Fund Diversion
The case centers around Piyush Colonisers Limited and its promoters, who are accused of serious financial misconduct. According to official sources, money paid by homebuyers for residential units in Palwal, Faridabad, Rewari, and Bhiwadi was not utilized for project completion as promised. Instead, investigators claim the funds were routed through subsidiary companies and channeled into acquiring new land parcels, leaving the original projects stalled and buyers in limbo.
During subsequent insolvency proceedings, the situation reportedly worsened. Authorities allege that key promoters transferred ownership of project lands by shifting shareholding to family members without any financial consideration. This maneuver is believed to have been executed to keep valuable assets out of reach of both homebuyers and creditors, further complicating resolution efforts.
Insolvency Proceedings and Multi-Agency Investigation
Piyush Colonisers Limited entered the Corporate Insolvency Resolution Process (CIRP) in 2019, but a resolution plan has yet to be approved, prolonging the uncertainty for affected buyers. The Enforcement Directorate (ED) has now taken significant action in the case, filing a chargesheet before a PMLA court in Gurugram against former promoter Amit Goel and others.
The ED probe, initiated based on FIRs filed by Haryana Police, Delhi's Economic Offences Wing, and the Central Bureau of Investigation (CBI), has resulted in the provisional attachment of immovable assets worth approximately Rs 944 crore. These assets are linked to the company, its former promoters, and associated entities.
Scope of Attached Properties and Impact on Homebuyers
The attached properties include project lands, apartments, agricultural plots, and commercial spaces spread across Faridabad, Palwal, Rewari, and Bhiwadi. Significant land parcels involved in the attachment include approximately 63 acres in Palwal, 62 acres in Bhiwadi, and 7 acres in Dharuhera. Additionally, a 19,000 square foot commercial space in Faridabad has been provisionally attached as part of the investigation.
Key aspects of the case include:
- More than 1,500 buyers affected across multiple National Capital Region projects without receiving possession
- Funds allegedly diverted from project completion to subsidiary companies for new land acquisitions
- Multiple developments in Palwal, Faridabad, Rewari, and Bhiwadi remaining incomplete for years
- Alleged asset transfers during insolvency proceedings to family members without payment
- No approved resolution plan since the company entered insolvency in 2019
- Multi-agency investigation involving Haryana Police, EOW Delhi, CBI, and ED pursuing money laundering angles
The case highlights significant challenges in the real estate sector, particularly regarding financial transparency and buyer protection. As the legal proceedings continue, affected homebuyers remain hopeful for a resolution that might finally deliver the homes they invested in years ago.
