The Enforcement Directorate’s attachment of over Rs 300 crore worth of assets of Bengaluru-based Mantri Developers marked one of the most high-profile real estate crackdowns impacting thousands of homebuyers in the city’s apartment market. The action, rooted in alleged diversion of homebuyers’ funds and prolonged project delays, continues to serve as a cautionary tale for both developers and buyers.​

Background of the ED action

• The Enforcement Directorate (ED) initiated a money laundering probe against Mantri Developers Private Limited and its subsidiaries under the Prevention of Money Laundering Act (PMLA), 2002.​
• The case arose from FIRs alleging that the group cheated homebuyers in three large residential projects in Bengaluru: Mantri Serenity, Mantri Web City and Mantri Energia.​

Allegations against the developer

• Subsidiary entities Castles Vista Private Limited and Buoyant Technology Constellations Private Limited allegedly lured buyers through glossy brochures, attractive schemes and promised timelines that were not honoured even 7–10 years after collecting money.​
• ED investigators alleged that funds collected from homebuyers were diverted to other projects and purposes, amounting to criminal breach of trust and “criminal misappropriation” of about Rs 300.4 crore.​

Scale and nature of attached assets

• The ED issued a provisional attachment order for immovable assets valued at over Rs 300 crore, largely linked to the Mantri Serenity and Mantri Energia projects in Bengaluru.​
• These assets were attached on the grounds that they represented the proceeds of crime generated through the alleged cheating and diversion of homebuyers’ advances.​

Action against company promoters

• The agency had earlier arrested Sushil P. Mantri, founder, promoter and director of Mantri Developers, in connection with the same money laundering probe.​
• Investigators alleged that under his leadership, the group collected substantial advances from hundreds of buyers and then channelled the funds away from the promised projects, aggravating losses and delays for purchasers.​

Impact on Bengaluru homebuyers and market

• Hundreds of families who booked homes in Mantri Serenity, Mantri Web City and Mantri Energia were left waiting for possession for years despite having paid substantial amounts, intensifying demand for stricter regulatory oversight.​
• The case reinforced calls in Bengaluru for more robust escrow safeguards, project monitoring and timely enforcement under RERA and PMLA to deter fund diversion and protect end-users in large township projects.​

  ED attaches Real Estate companys assets, Rs 300 Cr assets attached by ED