Advertisement
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
Airports play a much bigger role than just enabling travel -...
Why does the same hotel brand operate multiple properties in...
The Central Bureau of Investigation carried out searches across 77 locations in eight states as part of an ongoing probe into alleged collusion between builders and financial institutions. The action followed the registration of 22 fresh cases under Supreme Court directions, taking the total to 50 FIRs. The investigation focuses on irregularities linked to subvention schemes, where homebuyers were burdened with loan repayments despite project delays. Officials seized documents and digital records during the searches. The probe aims to track fund diversion, identify accountability gaps and address complaints raised by affected homebuyers across multiple housing projects.
The Central Bureau of Investigation (CBI) conducted searches at 77 locations across eight states in connection with an ongoing investigation into an alleged nexus between builders and financial institutions. The action followed the registration of 22 new cases, in line with directions issued by the Supreme Court in response to multiple complaints from homebuyers. Advertisement
The searches were carried out across cities including Delhi, Noida, Greater Noida, Ghaziabad, Mumbai, Chennai, Bengaluru and other locations. These cases relate to alleged fraudulent practices involving developers, bank officials and financial intermediaries, where homebuyers were induced to opt for housing loans under subvention schemes.
Under these schemes, developers had committed to servicing the equated monthly instalments (EMIs) on behalf of buyers until possession. However, several projects were delayed, and the repayment burden shifted to buyers despite incomplete construction. Investigators found that in many instances, loans were disbursed by banks to developers without proper verification of construction progress, raising concerns over due diligence and internal controls within lending institutions.
During the search operations, officials recovered various documents, electronic records and financial data, which are now being examined to understand the flow of funds. The agency is looking into possible diversion of loan amounts, misuse of funds meant for specific projects and irregular sanctioning of loans. The role of bank officials and project approvals is also under scrutiny.
This action is part of a wider investigation into builder-bank arrangements that have affected a large number of homebuyers, particularly in the National Capital Region. Prior to these developments, the CBI had already registered 28 cases, many of which were at advanced stages of investigation. With the addition of the latest cases, the total number of FIRs in the matter has increased to 50.
The Supreme Court had earlier expressed concern over the situation faced by homebuyers who continued to pay EMIs despite not receiving possession of their homes. It had directed a central probe to examine the alleged collusion and fix accountability. The court also highlighted the need to examine systemic issues in housing finance practices, especially those linked to subvention schemes.
Officials indicated that the investigation will continue based on evidence collected during the searches. Further questioning of developers, bank officials and other involved parties is expected as the agency builds its case. The findings are likely to play a role in determining legal action and potential recovery mechanisms for affected buyers.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
