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The Central Bureau of Investigation has filed a chargesheet against AVJ Developers (India) Pvt Ltd, associated companies, bank officials and alleged proxy homebuyers in connection with a large-scale homebuyer fraud and banking irregularities case. The agency stated that the investigation uncovered an alleged builder-bank nexus involving fraudulent representations, misuse of housing loans and diversion of funds, resulting in financial losses to homebuyers and lending institutions. Officials from Bank of India, UCO Bank and ICICI Bank have also been named in the chargesheet. The case relates to housing projects in Greater Noida and forms part of wider investigations into alleged irregularities in the residential real estate sector.
The Central Bureau of Investigation has filed a chargesheet against AVJ Developers (India) Pvt Ltd, its associated entities, bank officials and alleged proxy homebuyers in a case involving alleged cheating of homebuyers and financial institutions linked to residential real estate projects in Greater Noida. Advertisement
According to the agency, the chargesheet has been filed before a special CBI court in New Delhi following investigations into alleged fraudulent practices involving housing loans, financial transactions and project-related representations made to homebuyers and lenders.
The accused named in the chargesheet include AVJ Developers (India) Pvt Ltd, its sister concern Kesar Builders Pvt Ltd, directors of the companies, officials associated with Bank of India, UCO Bank and ICICI Bank, along with several alleged proxy homebuyers.
The CBI stated that the matter pertains to large-scale cheating of homebuyers and alleged criminal misconduct involving public servants, causing wrongful losses to both financial institutions and residential buyers. According to the agency, investigations indicated that the builder companies and their directors, allegedly acting in conspiracy with bank officials and private individuals, induced homebuyers and investors through false assurances and fraudulent representations in order to secure financial gains through illegal means.
Investigators further alleged that certain bank officials abused their official positions to facilitate irregularities and provide undue financial advantages to the developer entities, resulting in corresponding losses for lending institutions and homebuyers. Reports related to the investigation indicated that proxy buyers were allegedly used to secure fraudulent housing loans connected to the projects.
The case is linked to residential developments in Greater Noida, a market that has witnessed multiple instances of stalled housing projects, delayed possession and financial distress among developers over the past decade. The investigation forms part of broader scrutiny into alleged builder-bank collusion and misuse of housing finance mechanisms within the real estate sector.
According to reports, AVJ Developers (India) Pvt Ltd is currently undergoing corporate insolvency resolution proceedings under the Insolvency and Bankruptcy Code framework.
The chargesheet comes amid continuing regulatory and investigative action concerning financial irregularities and delayed housing projects across parts of the National Capital Region, particularly in Noida and Greater Noida, where several homebuyer groups have pursued legal and regulatory remedies over delayed delivery and alleged diversion of project funds.
Source - PTI
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