In an extraordinary pre-dawn proceeding, Patiala House Courts’ Additional Sessions Judge Shefali Barnala Tandon held a special hearing at her residence around 3:00 AM on Friday, November 14, to decide the Enforcement Directorate’s (ED) plea for custody of real estate developer Swaraj Singh Yadav, promoter of Ocean Seven Buildtech Pvt Ltd (OSBPL).
Yadav is accused of laundering crores of rupees collected from homebuyers under affordable housing projects sanctioned under the Pradhan Mantri Awas Yojana (PMAY) in Gurgaon.
24-Hour Rule Triggers Urgent Remand Request
The ED informed the court that it launched its search operation at 6:55 AM on Thursday and, relying on Supreme Court and High Court directives requiring production of an accused within 24 hours of the first search, sought an urgent midnight hearing to avoid procedural violations.
When the special proceedings commenced at 3:05 AM, Yadav’s legal counsel had not yet reached. The hearing continued until 6:30 AM, after which Judge Tandon sent Yadav to ED custody till November 28 and directed his production later the same afternoon at 2 PM.
Arrest Followed Multi-City Searches, Cash Seizure
Yadav was arrested on November 13 following coordinated ED searches at nine locations across Delhi-NCR, Rajasthan and Maharashtra under the Prevention of Money Laundering Act, 2002 (PMLA). The agency claimed to have seized ₹86 lakh in cash, alleged to be part of the proceeds of crime, along with documents and digital records indicating diversion of homebuyer funds.
Allegations: Dual Bookings, Fabricated Cancellations, Cash Premiums
According to investigators, Yadav and OSBPL are accused of offering PMAY units to beneficiaries and then cancelling the allotments on fabricated grounds. The same units were later allegedly resold at significantly higher prices without refunding earlier deposits, enabling Yadav to “collect dual proceeds” from the same inventory.
The agency further claims Yadav personally handled cash-based “premium” amounts collected during resale transactions while routed bank payments were diverted through controlled entities and shell companies.
Recovery Linked to Alleged Asset Liquidation
The ₹86 lakh seized was allegedly recovered from the possession of a relative. ED told the court that the amount represented proceeds from a land sale in Rajasthan linked to Yadav—evidence, it said, of active concealment of illicit gains.
The agency also submitted that Yadav has been rapidly liquidating assets across Gurgaon, Maharashtra and Rajasthan, and that such transactions indicate an attempt to dissipate tainted assets ahead of prosecution.
Investigators argued that custodial interrogation was necessary to prevent flight risk, citing that Yadav’s wife and children are already residing in the United States.
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