ED raids Aryan Hometec premises in ₹90-crore Bengaluru fraud case
Synopsis
The ED has raided three Bengaluru premises tied to Aryan Hometec and its directors over an alleged ₹90-crore fraud — where a landowner was made a loan guarantor and left to repay debts he never benefited from, while homebuyers' construction funds were allegedly siphoned off. Police had earlier filed 'C' reports saying the accused were untraceable; the ED says it tracked them down.
Key Takeaways
The Enforcement Directorate (ED) searched three premises linked to Aryan Hometec Private Limited and its directors on 4 November 2026 .
The alleged fraud is estimated at ₹90 crore , collected from homebuyers and investors for projects 'Aryan Fountain Square' and 'Aryan Golden Arena' .
Anjinappa was allegedly made a loan guarantor and had to repay a major portion of loans himself despite receiving nothing from the company.
Police had earlier filed 'C' reports declaring the accused untraceable; the ED conducted sustained efforts to locate them before the raids.
The agency alleged funds were layered by diverting amounts to family members and director-owned entities ; further investigation is ongoing.
The Enforcement Directorate (ED) on 4 November 2026 conducted search operations at three premises linked to Aryan Hometec Private Limited and its directors, Bharath Reddy and Rashmi Bharath Reddy, in connection with an alleged ₹90-crore cheating case involving a landowner, homebuyers, and financial institutions in Bengaluru. The agency's Bengaluru Zonal Office seized what it described as incriminating and valuable documents during the searches, according to an official statement.
Background and FIR Trail
The ED launched its investigation on the basis of multiple First Information Reports (FIRs) registered by police following complaints from landowner B.G. Anjinappa, homebuyers, and financial institutions against Aryan Hometec and its directors. Notably, in at least a couple of cases, police had filed 'C' reports — indicating that the accused persons were untraceable. The ED said it made sustained efforts to establish their whereabouts before proceeding with the searches.
How the Alleged Fraud Unfolded
According to the agency, Aryan Hometec entered into a Joint Development Agreement (JDA) with landowner Anjinappa, under which the company agreed to share units, apartments, and land from two projects — 'Aryan Fountain Square' and 'Aryan Golden Arena' — in the ratio of 63 per cent and 37 per cent, respectively. The company allegedly failed to construct and hand over the apartments due to Anjinappa under the agreement.
The ED further alleged that Aryan Hometec made Anjinappa a guarantor for loans obtained from various financial institutions. Despite receiving no returns from the company or its directors, Anjinappa reportedly repaid a major portion of those loans himself in order to retain his land.
Homebuyers and Investors Allegedly Cheated
The agency alleged that the directors also cheated homebuyers and investors by diverting funds collected for the construction of the two projects. An estimated ₹90 crore collected for the two projects was allegedly siphoned off by the company for purposes other than construction. The ED stated that proceeds of crime were subsequently layered and integrated by diverting substantial amounts to family members and entities owned by the directors.
Investigation Status
The ED confirmed that further investigation into the matter is underway. The searches mark a significant escalation in a case where earlier police efforts had stalled due to the alleged non-traceability of the accused. This comes amid a broader national push by the ED to pursue money-laundering angles in real-estate fraud cases, particularly those involving joint development agreements where multiple stakeholders — landowners, homebuyers, and lenders — are simultaneously affected.
Point of View
Often less legally protected than institutional investors, end up bearing the financial fallout of a developer's alleged misconduct, including repaying loans they were coerced into guaranteeing. The fact that police had issued 'C' reports declaring the accused untraceable before the ED stepped in raises questions about earlier investigative momentum. Real-estate fraud of this scale — spanning landowners, retail homebuyers, and financial institutions simultaneously — demands faster regulatory coordination between RERA, local police, and central enforcement agencies. The ED's intervention, while welcome, comes well after significant financial damage to individual victims.
NationPress
4 Nov 2026
Frequently Asked Questions
What is the Aryan Hometec ₹90-crore fraud case?
It is an alleged cheating and money-laundering case in Bengaluru involving Aryan Hometec Private Limited and its directors, Bharath Reddy and Rashmi Bharath Reddy. The company allegedly siphoned off approximately ₹90 crore collected from homebuyers and investors for two real-estate projects — 'Aryan Fountain Square' and 'Aryan Golden Arena' — instead of using it for construction.
What did the ED seize during the raids on Aryan Hometec?
During searches at three premises on 4 November 2026, the ED's Bengaluru Zonal Office seized incriminating and valuable documents, according to an official statement. The agency has not disclosed specific documents or further assets seized at this stage.
How was landowner B.G. Anjinappa affected?
Anjinappa entered into a Joint Development Agreement with Aryan Hometec to share apartments and land in a 63:37 ratio, but the company allegedly failed to deliver his share. He was also allegedly made a guarantor for the company's loans and ended up repaying a large portion of those loans himself to protect his land, despite receiving no returns from the firm.
Why did the ED get involved if police had already registered FIRs?
The ED initiated a money-laundering investigation under the Prevention of Money Laundering Act (PMLA) after multiple FIRs were registered by police. In at least two cases, police had filed 'C' reports indicating the accused were untraceable, prompting the ED to conduct its own search to locate them before carrying out the raids.
What happens next in the Aryan Hometec investigation?
The ED has confirmed that investigation is continuing. Depending on what the seized documents reveal, the agency may attach assets identified as proceeds of crime and can file a formal prosecution complaint under PMLA. Homebuyers and other complainants would be treated as witnesses or aggrieved parties in the ongoing proceedings.
