The Enforcement Directorate has issued a strict advisory to homebuyers following the attachment of ₹129.80 crore in assets linked to Ahmedabad-based Keshav Narayan Group. The agency highlighted serious red flags, including unauthorized pre-launch schemes and demands for cash, urging buyers to independently verify project approvals and RERA registration to avoid financial loss.
On August 17, 2026, the Enforcement Directorate (ED) released a nationwide advisory urging homebuyers to exercise extreme caution when dealing with real estate developers. This warning follows a recent regulatory action where the agency provisionally attached assets worth ₹129.80 crore belonging to the Ahmedabad-based Keshav Narayan Group and its promoters, Ronak Ravjibhai Sonani and Vipulbhai Gordhanbhai Gangani. The ongoing investigation centres on allegations of a major fraud involving unauthorized pre-launch schemes.
The ED’s advisory is based on its findings during these investigations, where it identified specific patterns of misconduct that put homebuyer capital at risk. The agency has flagged several warning signs that buyers should monitor before investing. These include developers who refuse to share their official RERA (Real Estate Regulatory Authority) registration details, those who insist on cash transactions, and companies that delay the issuance of registered documents or refunds. The ED emphasized that buyers should not rely on oral promises from brokers or informal booking forms, which lack legal protection.
Risks of Pre-Launch and Subvention Schemes
For many investors, the most dangerous trap lies in investing in projects that have not yet received all necessary statutory approvals. Often marketed as "pre-launch" offers, these projects lack the environmental clearances and land titles required for legal construction. The ED warns that investing in such schemes significantly increases the risk of project abandonment, as developers may not have the legal right to build or sell the units.
Another critical risk highlighted is the use of "subvention schemes," where developers promise to pay the buyer's loan EMIs for a specific period. The agency warned that if the developer defaults on these payments, the buyer remains solely responsible for the entire loan amount, leading to potential credit score damage and legal complications. The attachment of the Keshav Narayan Group's assets serves as a reminder that the ED is actively using the Prevention of Money Laundering Act (PMLA) to pursue cases where funds collected from buyers are allegedly diverted.
Essential Due Diligence for Buyers
Before finalizing any property purchase, the ED advises buyers to conduct independent checks. This involves verifying the project's status directly through official state RERA portals, checking land title records, and ensuring all statutory approvals are in place. Buyers are encouraged to prioritize projects that have clear legal standing over those marketed with unrealistic promises of high returns. The core message is to treat property investment with the same level of scrutiny as any other major financial decision, ensuring all agreements are registered and transparent to avoid falling victim to fraudulent practices.