ED raids expose alleged bid rigging, undervalued land sale in IBC process

The Directorate of Enforcement (ED), Gurugram Zonal Office, has conducted sweeping search operations across six locations in Delhi and Gurugram, uncovering an alleged scheme involving the undervalued sale of land through the misuse of the Insolvency and Bankruptcy Code (IBC) process. The searches, carried out on November 20, 2025, are linked to an investigation initiated by the ED based on over 30 FIRs registered across Delhi NCR. These FIRs were lodged against Universal Buildwell Pvt. Ltd. and its promoters for cheating homebuyers and investors due to non-completion of real estate projects.

Key findings from the search operation

The ED’s investigation focuses on the undervalued sale of an asset belonging to Universal Buildwell Pvt. Ltd. after the company underwent the Corporate Insolvency Resolution Process (CIRP).

The investigation revealed that a parcel of land was sold at a throwaway price, despite its market value—even at government rates—being significantly higher than the proposed sale value, suggesting an attempt to profit illicitly from the process.

The raids targeted several individuals and entities, including:

• Middlemen not part of the formal Insolvency process.
• The Resolution Professional (RP).
• NCLT advocates.
• The property buyer, RDB Infrastructure and Power Ltd, promoted by Vinod Duggar.

Seizures and evidence of collusion

During the action, conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002, the ED seized unexplained cash of approximately Rs. 50 Lakh from two intermediaries. These individuals included an advocate practicing before the Hon’ble NCLT, both of whom were involved in facilitating the undervalued transaction.

Evidence collected strongly suggests “clear collusion and bid rigging”:

• Digital Data: Mobile phones yielded draft invoices reflecting proposed illicit and unaccounted consideration, indicating arrangements for illegal gains outside the IBC/NCLT framework and without approval from creditors.
• Bidding Manipulation: Evidence showed manipulation of the bidding process through predetermined and artificially suppressed bids, with one bid even being submitted by the middleman advocate himself.
• Bank Nexus: Social media communications established a nexus between the intermediaries and an official of a Private Bank, which was a secured creditor. This official appears to have facilitated the undervaluation scheme while overseeing the sale, despite the bank taking a “haircut” on the loan even with a significant appreciation in the property’s value.

Negligence and exclusion of homebuyers

The investigation also pointed to potential negligence on the part of the Resolution Professional.

Crucially, homebuyers (SRAs), who had a direct stake in maximizing the asset value, were allegedly “deliberately kept uninformed,” as revealed by seized materials. The original resolution plan, approved following the IBC process, had directed certain assets to be handed over to homebuyers while the remainder was to be liquidated.

Further investigation is currently under progress. The ED’s action underscores a serious crackdown on financial irregularities and alleged corruption within the NCLT and IBC ecosystem.

Also See: ED attaches Rs 1,452-cr assets linked to RCom fraud; Total attachments near Rs 9,000 crore