ED has seized assets worth Rs 54.71 crore in Delhi’s Maharani Bagh. The Enforcement Directorate took this action last Friday in a money laundering probe against the Amrapali Group. According to the ED, Amrapali Group is accused of transferring and misappropriating over Rs 5,000 crore collected from home buyers to other companies. Earlier in September 2026, the Supreme Court had also ordered the ED to identify the assets of former directors of Amrapali and prioritize recovery from them.

A big question after this ED action is if a builder is accused of money laundering or fraud, then what will happen to the home buyers who invest their life savings in it? Do they get a flat, can they get their money back or can their money be trapped even after selling the builder’s property? Let’s know what happens to home buyers’ money after ED action against builder and how they can get flat or refund.

1. What will happen to home buyers’ money if ED raids the builder?

When a builder is suspected of money laundering, the ED can check his office, house or other places. The agency can also examine records related to bank accounts, transactions, companies and properties. If the investigation raises any suspicion that any property is linked to the proceeds of crime, it can be attached under the law.

But one thing must be understood here. ED raids or seizure of property does not mean that homebuyers’ money has been forfeited or their claims exhausted. The question of refund of amount paid by the buyer to the builder is different. ED’s action is aimed at investigating alleged money laundering and securing assets related to it.

If the builder has transferred the money received from the buyers to other companies, the investigating agency can probe those transactions and properties. After this, the process of confiscation and recovery of property can proceed under the law. However, whether the buyer gets the money back will depend not only on the ED raid, but on his claim, available assets and further legal proceedings.

2. Buyers get money when builder’s property is attached?

No, buyers do not get immediate money when the property is attached. Attachment means that the property in question has been protected under the law to prevent it from being sold or transferred. After this, the necessary legal procedures for seizure and sale of the property have to be completed.

Suppose, the builder’s Rs. 50 crore property has been attached. This does not mean that Rs 50 crore from that property will be distributed directly to the home buyers. The actual sale price of the asset, valid claims on it and relevant legal orders will be important in determining how much money will be available and how it can be used.

3. How is it decided whether the buyer will get a flat or a refund?

If you have paid money to a builder for a flat and then the builder is investigated for fraud or money laundering, you may have two different options – possession of the flat or claiming the money back. Which route applies to you depends on the status of the project, your contract and relevant legal mandates.

1. In the first scenario, the project can be completed- If there is a way to complete the project then the construction work can proceed under the supervision of the concerned court or competent authority. For this one has to consider the pending cost of construction, available funds, status of builder and other necessary arrangements. After completion of construction and completion of necessary formalities, buyers can take possession of the flat. However, this does not happen automatically and is not guaranteed in every project.
2. In the second case, the buyer wants a refund- If the buyer does not want to take the flat or has reasons to return the money in his case, he can claim a refund under the applicable legal procedure. But there is a difference between claiming and actually getting money. Payment records, related orders, available assets of the builder and recovery status will be important.
3. Third situation, builder does not have enough property- If the builder’s available assets are less than the buyers’ total claim, not everyone is guaranteed a full refund. In such a case, the recovery and disbursement of the amount will be in accordance with the legal process and relevant orders. That is, ED proceedings do not automatically decide whether the buyer will get a flat or a refund. For this one has to look at the status of the project and the claim of the buyer.

Overall, ED raids on the builder do not automatically terminate the rights of the home buyers, but there is no guarantee that they will get their money back immediately. Whether the buyer will get the flat or the refund depends on the status of the project, his legal claims, recovery from the builder’s assets and related orders. Therefore, it is important for buyers to maintain proof of their payments, monitor project status and take appropriate legal recourse as per their case.