India, Nov. 16 -- The Enforcement Directorate (ED) on Saturday said it had arrested Swaraj Singh Yadav, managing director of Ocean Seven Buildtech Pvt Ltd (OSBPL), and "uncovered" a trail of fund diversion, cash dealings and systematic laundering of money collected from homebuyers.

ED conducted searches across nine locations in Delhi-NCR and other parts of the country on November 13 under the Prevention of Money Laundering Act (PMLA) and seized Rs.86 lakh, said to be the proceeds of crime. Officials said the cash was found with a relative of Yadav, and was linked to a land sale in Rajasthan, establishing "active possession and concealment" of illicit funds.

A senior ED officer said Yadav orchestrated a complex scheme to siphon off homeb...