The Directorate of Enforcement (ED) conducted search operations at two locations in Nagpur, Maharashtra on 26 October 2026, seizing unaccounted cash of ₹1.95 crore and freezing bank balances worth more than ₹40 lakh in a property fraud case, officials confirmed on Saturday. The raids targeted premises linked to Shashank Govind Prasad Pandey, proprietor of M/s Prayag Developers & Builders, under the provisions of the Prevention of Money Laundering Act (PMLA).

What the Searches Uncovered

According to the ED statement, search teams recovered 'voluminous incriminating documents and records, digital devices' alongside the seized cash. Investigators also identified several immovable properties, collectively valued at what officials described as 'crores of rupees', suspected to have been acquired from proceeds of crime. The freezing of bank balances worth over ₹40 lakh is part of the agency's efforts to prevent further asset dissipation during the ongoing investigation.

The Fraud Against a Senior Citizen Widow

The ED investigation was triggered by FIRs registered at Ajni Police Station and Ranapratapnagar Police Station in Nagpur, for alleged offences under Sections 418 and 420 of the Indian Penal Code, 1860. In one instance, Pandey reportedly entered into a development agreement over land owned by a senior citizen widow, under which he was obligated to pay ₹1.75 crore and allot 14 residential flats to the complainant. According to officials, Pandey fraudulently cancelled a Declaration-cum-Correction Deed earmarking those flats — without her knowledge or consent — and subsequently sold them to third parties. The sale proceeds of ₹8.93 crore were allegedly misappropriated, and an additional ₹45 lakh payable under the development agreement was withheld, resulting in an aggregate wrongful loss of ₹9.4 crore to the complainant, officials said.

The Divya Prayag Apartment Case

A second strand of the investigation centres on the Divya Prayag Apartment project. The ED found that 22 flats had been mortgaged to Dewan Housing Finance Corporation Limited (DHFL) against a project loan of ₹22 crore, of which ₹11 crore had been disbursed. Pandey allegedly sold these mortgaged flats to buyers without obtaining the requisite No Objection Certificate (NOC) from the lender and without disclosing the subsisting mortgage to purchasers. He also reportedly submitted a false affidavit to the bank in connection with a home loan, concealing the existing mortgage. Outstanding dues of ₹12.84 crore subsequently emerged, triggering proceedings under the SARFAESI Act. Officials said the concealment and misrepresentation are suspected to have caused wrongful loss to flat buyers and corresponding wrongful gain to the accused.

Broader Pattern and Investigation Status

This case is part of a wider pattern of real-estate fraud prosecutions the ED has pursued under PMLA across Maharashtra, where developers have allegedly exploited homebuyers through mortgage concealment and deed cancellations. Notably, the involvement of DHFL — itself at the centre of a major financial fraud case — adds another layer of institutional complexity to the probe. The investigation is underway and further developments are expected as the agency analyses seized documents and digital evidence.