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The Central Bureau of Investigation (CBI) has filed its fifth chargesheet in the ongoing builder-banker nexus investigation, this time against CHD Developers Ltd and its directors over alleged fraud linked to a housing project in Gurugram. The agency alleged that homebuyers and investors were misled through false assurances and deceptive representations, causing financial losses to buyers. The case is part of a wider Supreme Court-monitored investigation into alleged collusion between builders and financial institutions in projects across India. The CBI is currently probing around 50 such cases involving stalled projects, diversion of funds and irregular loan disbursals.
The Central Bureau of Investigation (CBI) has filed a fifth chargesheet in the ongoing builder-banker nexus cases against CHD Developers Ltd and its directors in connection with alleged fraudulent activities related to a housing project in Gurugram. The chargesheet was filed before a competent court under provisions related to criminal conspiracy, cheating and criminal breach of trust. Advertisement
According to the agency, the investigation revealed that the company and its directors allegedly induced homebuyers and investors to put money into the project by making misleading promises and false representations regarding the development and delivery of the housing project. The CBI alleged that the accused secured wrongful financial gains while buyers suffered financial losses after investing in the project.
The matter forms part of a larger Supreme Court-directed investigation into the alleged nexus between builders and officials of financial institutions linked to various housing projects across the country. The investigation was initiated after several homebuyers approached the apex court claiming that banks and housing finance companies had sanctioned and disbursed loans to developers under subvention schemes without carrying out proper due diligence, despite projects facing delays or remaining incomplete.
Under the subvention model, homebuyers were generally required to pay a small portion of the property value upfront, while banks released the remaining amount directly to developers. Builders were expected to bear the interest liability during the construction period until possession was handed over. However, several projects across NCR witnessed long delays, and in many cases, developers allegedly defaulted on commitments, after which financial institutions reportedly started demanding EMIs from homebuyers even though the projects were incomplete.
Investigators are also examining the alleged diversion of funds collected from buyers and loans disbursed by financial institutions. In several builder-banker nexus cases being probed by the agency, authorities have alleged that project funds were diverted to other group entities or unrelated purposes instead of being used for construction and project execution. Such practices reportedly worsened delays and increased financial stress for homebuyers waiting for possession.
The CBI is currently investigating nearly 50 cases registered following directions from the Supreme Court against several developer groups, unknown public servants and officials of financial institutions. Earlier, the agency had conducted searches across multiple cities, including locations in NCR, as part of the wider probe into alleged irregularities in housing finance practices and stalled residential developments.
Previous chargesheets in similar matters were filed against Rudra Buildwell Constructions Pvt Ltd, Dream Procon Pvt Ltd, Jaypee Infratech Ltd and AVJ Developers (India) Pvt Ltd, along with certain officials of banks and housing finance companies. Some investigations also examined the alleged use of proxy homebuyers and routing of funds through related entities to secure loan disbursals.
The larger investigation has become significant for the real estate sector as thousands of homebuyers across NCR and other regions continue to face delays in possession and repayment burdens linked to stalled projects financed through subvention schemes. The Supreme Court had earlier observed that there appeared to be an alleged “unholy nexus” between some builders and financial institutions in sanctioning loans without adequate safeguards for homebuyers.
Source PTI
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