The Enforcement Directorate (ED) has initiated searches at three locations linked to Gopal Goyal Kanda, a businessman and former Minister of State for Haryana, as part of an inquiry into alleged money laundering totalling Rs 248.46 crore. The search began early on Thursday, September 17, 2026, focusing on Kanda’s residence, farmhouse, and office situated in Gurugram, Haryana.

This operation is being conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), which provides the ED with extensive powers to carry out searches and seizures as part of its investigative mandate. This procedure allows the agency to probe financial irregularities and uncover potential illicit activities.

The searches are tied to an ongoing investigation led by the agency’s Gurugram unit, which is examining a large-scale real estate fraud allegedly involving Vatika Limited. The case revolves around claims that investors were misled into funding commercial projects with assurances of prompt possession, guaranteed returns, and lease rentals that have not materialised.

Investigation into Investor Fund Mismanagement

According to officials, the inquiry centres on four projects wherein approximately Rs 248.46 crore was collected from 661 investors. These funds were reportedly raised without delivering on the promised sale deeds or possession of properties to the investors. The apparent mismanagement of these funds is a pivotal aspect of the investigation.

Sources indicate that the ED’s searches are informed by a financial trail suggesting a diversion of home buyers’ funds. Allegations have emerged that these diverted funds were channelled to various corporations associated with Kanda. The complexity of the case has necessitated extensive investigative efforts to trace and recover the alleged misappropriated amounts.

The ongoing search operations are being conducted in collaboration with local security and state police forces to ensure a secure environment for the proceedings. The collaboration aims to facilitate a thorough investigation while maintaining public order during these sensitive operations.

ED’s Planned Expansion and Restructuring

In a wider organisational context, the Enforcement Directorate is gearing up to enhance its operational framework by expanding its structure to include 50 PMLA Zones and five designated FEMA Zones by January 1, 2027. This move follows the approval of a new cadre restructuring aimed at improving the efficiency of investigations.

The establishment of these zones is intended to streamline the handling of cases related to money laundering under the Prevention of Money Laundering Act, alongside foreign exchange violations governed by the Foreign Exchange Management Act (FEMA). The restructuring is anticipated to enable the Directorate to reduce the lifecycle of investigations significantly, from four to five years down to approximately one-and-a-half years.

As part of the restructuring plan, the sanctioned workforce of the Directorate will increase from 2,029 to 3,256 posts, marking a significant rise of around 60 per cent. The number of functional units will also expand from 131 to 241, enhancing the organisation’s investigative capacity across the nation.

These developments were outlined at the ED’s 36th Quarterly Conference of Zonal Officers, held in Bengaluru on September 14-15. Chaired by ED Director Rahul Navin, the conference was attended by senior officials from the agency’s headquarters and field formations, during which the roadmap for future operations was discussed.

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