The Unitech Group Homebuyers Fraud

“Unitech marketed and sold flats in projects such as 'Wild Flower' and 'Anthea' in Gurugram and elsewhere, with committed possession timelines under its builder-buyer agreements.”

— Unitech Ltd. (Ramesh Chandra, founder, and sons Sanjay Chandra and Ajay Chandra, Managing Directors), One of India's largest listed real estate developers, with residential projects across Gurugram, Noida, and Greater Noida · 1 January 2008

This reflects the general commitment in Unitech's builder-buyer agreements across projects sold mainly from the mid-2000s onward, rather than a verified quotation from a specific agreement, which this entry has not reviewed directly.

That homebuyers who paid substantial sums, in some cases most of a flat's cost, would receive possession of completed flats within contractually promised timelines.

Contractual delivery timelines in builder-buyer agreements, and subsequently the Real Estate (Regulation and Development) Act, 2016 (RERA).

In force from 1 May 2016

In April 2017, Delhi Police's Economic Offences Wing arrested Unitech Managing Directors Sanjay Chandra and Ajay Chandra on homebuyers' complaints of fraud over the 'Wild Flower' and 'Anthea' projects in Gurugram. A Supreme Court-ordered forensic audit subsequently found the company had collected roughly Rs 14,270 crore from about 29,800 homebuyers, and that the Chandra brothers had diverted large sums — reported at different points as Rs 1,749 crore moved abroad and further amounts routed through entities in Cyprus and the Cayman Islands — rather than using the funds to complete construction. The Enforcement Directorate separately found homebuyers' funds diverted to entities including a south Goa resort project and CIG Realty Fund, and the CBI filed a case alleging the Chandra family defrauded Canara Bank of Rs 198 crore. In January 2020, the Supreme Court approved a government takeover of Unitech's board, installing an independent management to oversee stalled projects. The Chandra brothers were held for years in Tihar Jail — during which the ED alleged homebuyers' money was used to bribe jail officials, prompting the Supreme Court to order their transfer to Mumbai prisons in 2021 — before being granted bail. As of mid-2025, roughly 15,000 residential units across about 10 projects in Noida and Greater Noida remained undelivered, the Supreme Court had exempted various stalled projects from mandatory RERA registration to unlock funding, and a large funding gap persisted (against a demand of Rs 613.20 crore from homebuyers, only about Rs 392.45 crore had been received as of 31 May 2025).

As of 31 May 2025

Separately, forensic findings reported that the Chandra brothers diverted approximately Rs 1,749 crore abroad, with additional amounts (reported at over Rs 2,000 crore in some accounts) alleged to have moved through Cyprus- and Cayman Islands-linked structures; the Enforcement Directorate also found smaller diversions such as Rs 244 crore to CIG Realty Fund and Rs 60.25 crore to a south Goa resort project. These figures come from different audits/investigations and have not been reconciled into a single total.

1. 1 Jan 2008Announcement
   Unitech markets 'Wild Flower' and 'Anthea' projects

   Flats sold in Gurugram projects with promised possession timelines.

2. 1 Apr 2017Milestone
   Chandra brothers arrested

   Delhi Police's Economic Offences Wing arrests Sanjay and Ajay Chandra on homebuyers' fraud complaints related to the Wild Flower and Anthea projects.

3. 1 Jan 2018Milestone
   Supreme Court orders forensic audit

   Audit later finds Rs 14,270 crore collected from ~29,800 buyers and Rs 1,749 crore diverted abroad.

4. 20 Jan 2020Status
   Supreme Court approves government takeover

   A government-appointed independent board, chaired by a former IAS officer, takes charge of Unitech's management to protect homebuyers.

5. 27 Aug 2021Delay
   SC orders Chandras moved out of Tihar Jail

   Following ED allegations that homebuyers' funds were used to bribe Tihar officials, the Supreme Court orders the brothers shifted to Mumbai prisons.

6. 1 Feb 2023Status
   Former promoters seek bail hearing

   Sanjay and Ajay Chandra approach the Supreme Court seeking a hearing on long-pending bail pleas in the financial fraud case.

7. 16 Jan 2025Revision
   SC exempts stalled projects from RERA registration

   The Supreme Court exempts various stalled Unitech projects from mandatory RERA registration to help unlock funding for completion.

8. 31 May 2025Status
   Large funding gap persists under new management

   Against a demand of Rs 613.20 crore from homebuyers, only about Rs 392.45 crore had been received, per company/board disclosures.

Sanjay and Ajay Chandra were arrested in April 2017 and spent years in custody across the homebuyers'-fraud case, a CBI case alleging bank fraud against Canara Bank, and an Enforcement Directorate money-laundering case. Both brothers have since been granted bail; as of this entry's research, no final conviction has been reported and the underlying criminal and ED cases remain under trial. The Supreme Court's civil proceedings resulted in a government takeover of Unitech's board to protect homebuyers, which remains in place.

• The precise, reconciled total figure for money diverted (as opposed to money simply collected from buyers) varies across sources — from roughly Rs 1,749 crore reported abroad to figures exceeding Rs 2,000 crore including Cyprus/Cayman Islands routing — and has not been settled in one authoritative document reviewed for this entry.
• The current status (as of this entry's research) of the CBI's Canara Bank fraud case and the ED money-laundering case against the Chandra family was not fully confirmed, including whether any trial dates have been set.
• The exact number of homebuyers still awaiting possession as of the most recent update, versus the ~29,800 originally cited by the Supreme Court-ordered audit, has not been independently reconciled.