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The Central Bureau of Investigation (CBI) has filed a chargesheet against Logix City Developers, several company directors, unknown officials of financial institutions and others in connection with an alleged homebuyers’ fraud case involving around INR 400 crore. The case relates to alleged diversion and misuse of funds collected from homebuyers for a residential project in Noida. According to the investigation agency, the accused allegedly entered into a criminal conspiracy to siphon off project funds and failed to utilise the money for construction and project completion. The case was registered following directions from the Supreme Court in matters linked to delayed housing projects and complaints by affected homebuyers. The CBI has alleged offences related to criminal conspiracy, cheating and criminal misconduct under provisions of the Indian Penal Code and the Prevention of Corruption Act.
The Central Bureau of Investigation (CBI) has filed a chargesheet against Logix City Developers, its directors, unidentified bank officials and other accused persons in connection with an alleged homebuyers’ fraud case linked to a stalled residential development project in Noida. Advertisement
According to officials, the agency has alleged financial irregularities and diversion of funds amounting to nearly INR 400 crore collected from homebuyers for development of the project. The chargesheet has been filed before the competent court following completion of the initial phase of investigation into the matter.
The investigation agency stated that the accused persons allegedly entered into a criminal conspiracy involving diversion and misuse of funds received from homebuyers and financial institutions instead of deploying the money towards construction and completion of the housing project.
According to the CBI, the alleged irregularities resulted in prolonged project delays and financial losses to homebuyers who had invested in the residential development. The agency further alleged that certain bank officials were also involved in facilitating irregular financial transactions and sanction-related processes connected to the project.
The case was registered pursuant to directions issued by the Supreme Court during hearings related to stalled housing projects and complaints raised by homebuyers regarding delays in possession and alleged diversion of project funds. The matter forms part of broader investigations into stressed and delayed residential projects in the National Capital Region (NCR).
The CBI has invoked charges under various provisions of the Indian Penal Code, including criminal conspiracy and cheating, along with provisions of the Prevention of Corruption Act against the accused persons.
The investigation agency has also alleged that the accused diverted funds through multiple entities and financial transactions unrelated to the construction activity of the concerned project. Officials indicated that further investigation into additional financial trails and associated transactions remains ongoing.
The case adds to a series of investigations involving delayed residential developments and alleged fund diversion cases across the NCR housing market over the past several years. Regulatory authorities and courts have increasingly scrutinised project financing structures, escrow mechanisms and fund utilisation practices amid rising concerns over delayed possession and stressed residential projects.
Industry stakeholders have indicated that legal action and regulatory oversight in such cases have intensified following implementation of the Real Estate (Regulation and Development) Act (RERA) and subsequent judicial interventions aimed at improving accountability and protecting homebuyer interests in the residential sector.
Source - PTI
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