CBI Files 22 FIRs Over Alleged NCR Builder-Bank Scam; 47 Locations Raided

The Central Bureau of Investigation (CBI) has intensified its probe into an alleged nexus between real estate developers and financial institutions accused of defrauding thousands of homebuyers in the National Capital Region (NCR). The agency has registered 22 FIRs and conducted extensive searches at 47 locations across Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, and other NCR hubs, seizing crucial documents and digital evidence.

The crackdown follows a Supreme Court directive to investigate what it termed an “unholy nexus” between builders and banks, after numerous complaints from aggrieved buyers. Among the developers named in the FIRs are Jaypee Sports International Ltd, Jaiprakash Associates Ltd, Ajnara India Ltd, Vatika Ltd, Jaypee Infratech Ltd, Supertech, and Idea Builders.

Several major banks and housing finance companies have also come under the scanner, including State Bank of India, HDFC Bank, ICICI Bank, Indiabulls Housing Finance, PNB Housing Finance, Tata Capital Housing Finance, and Piramal Finance. The FIRs were filed by the Economic Offences Unit of the CBI.

Focus on Subvention Scheme Fraud

The investigation centers around a controversial subvention scheme under which banks sanctioned home loans in buyers’ names but released the funds directly to builders. Developers were responsible for paying the EMIs until handing over possession. However, when several builders defaulted, financial institutions began demanding repayments from buyers—even though many had yet to receive their homes.

Acknowledging the magnitude of the alleged fraud, the Supreme Court lauded the CBI’s “diligence,” noting that the agency had already questioned over 1,000 people and inspected 58 project sites. The bench of Justices Surya Kant and N Kotiswar Singh also allowed the conversion of six preliminary enquiries into full-fledged FIRs and noted that a seventh probe covering projects outside NCR—including in Mumbai, Bengaluru, Kolkata, Mohali, and Allahabad—is ongoing.

The case stems from petitions filed by over 1,200 homebuyers who booked flats in Noida, Greater Noida, and Gurugram under the subvention scheme. They allege that despite paying upfront and being promised possession-linked payments, they are now being “coerced” to pay EMIs for properties they never received.

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