The Haryana State Enforcement Bureau has lodged an FIR against Ocean Seven Buildtech (OSB) Pvt Ltd and its director, Swaraj Singh, for alleged fund diversion, licence violations, and large-scale irregularities in its affordable housing projects, leaving hundreds of homebuyers in distress.

This is one of the biggest enforcement crackdowns in Haryana’s affordable housing sector, and has also prompted authorities to seek a lookout circular (LOC) against Singh amid fears he may attempt to flee the country.

The FIR was registered under Sections 10 and 12 of the Haryana Development and Regulation of Urban Areas Act, 1975, and the investigation was handed over to HSEnB sub-inspector.

According to the complaint, OSB was granted licences between 2016 and 2019 to develop three affordable group housing projects — in Sector 109 (7.5 acres), Sector 69 (5.41 acres) and Sector 70 (5.10 acres). These licences were suspended in Feb 2023 under Section 3(3) of the Act following repeated violations.

Buyers have alleged multiple sales of the same unit to different allottees, leaving hundreds of families in financial distress.

The FIR also highlights OSB’s default on outstanding dues worth Rs 21 crore against the suspended licences. Despite the suspension, the builder allegedly continued to collect payments from buyers, cancel units, divert funds and even re-sell cancelled flats.

Investigations revealed that while nearly 95% of buyer payments were collected, only 62.5% of construction work was completed. The projects have remained stalled since 2019 with negligible progress.