The Central Bureau of Investigation (CBI) has launched a sweeping crackdown on real estate developers and financial institutions across the National Capital Region (NCR), alleging large-scale cheating of homebuyers through fraudulent housing loan schemes and fund diversion.
The CBI carried out searches at 47 locations across Delhi, Gurugram, Noida, Greater Noida, and Ghaziabad, seizing documents and electronic evidence. This operation follows a directive from the Supreme Court in April 2025, which allowed the agency to convert multiple preliminary enquiries (PEs) into 22 full-fledged First Information Reports (FIRs).
The probe focuses on the alleged misuse of the subvention scheme — a widely marketed loan plan in which developers paid the interest on behalf of homebuyers during the construction period — which later turned into a trap for thousands of unsuspecting buyers. According to CBI sources, many of these schemes were misused by builders in collusion with bank officials to fraudulently obtain loans and siphon off funds without completing the promised projects.
Among the prominent developers named in the FIRs are Supertech, Ajnara India Ltd, Vatika Ltd, Jaypee Infratech Ltd, Jaypee Sports International Ltd, and Jaiprakash Associates Ltd. The agency is also probing the role of unidentified officials from financial institutions who allegedly approved home loans without due diligence or based on inflated valuations.
The investigation is the result of complaints filed by over 1,200 homebuyers, many of whom had invested their life savings in under-construction housing projects in Noida, Greater Noida, and Gurugram. When construction stalled and the builders stopped paying interest as promised, buyers were left with unfinished homes and mounting EMIs.
Following public outcry and legal petitions, the Supreme Court had directed the CBI to examine the matter in April. Based on the findings of six of the seven PEs submitted to the court in July, the apex court ordered the registration of 22 regular criminal cases.
A CBI official familiar with the investigation said the agency found clear patterns of fund diversion. In many cases, developers had taken multiple loans against the same land or project, or used buyer funds for unrelated ventures, leaving the primary projects incomplete. The official added that this was made possible by collusion with banking officials who bypassed risk assessments and approvals.
Residences and offices of the accused developers and financiers were searched during the raid. Officials seized computers, hard drives, and financial records which are now being analyzed for evidence of criminal conspiracy, fund diversion, and misappropriation.
Legal experts view the CBI’s crackdown as one of the most consequential enforcement actions in recent years targeting irregularities in the real estate sector. According to a senior legal analyst, the subvention scheme, although conceptually beneficial for buyers, had been widely misused due to inadequate regulatory oversight. In several cases, aggressive marketing by developers and poor due diligence by banks contributed to the financial distress of homebuyers, with the role of financial institutions adding further gravity to the situation.
The developers named have yet to issue formal responses. Efforts to contact company representatives for comments have so far gone unanswered.
The case is likely to expand further as the investigation progresses. The CBI is expected to question company directors, financial officers, and bank executives in the coming weeks. A wider probe into the approval process of subvention loans by housing finance institutions may also be initiated.
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