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The Enforcement Directorate (ED) conducted searches at multiple locations across Delhi-NCR as part of a money laundering investigation into alleged cheating of homebuyers through subvention schemes. The investigation concerns real estate companies AVJ Developers (India) and Rudra Buildwell Construction and stems from two separate FIRs registered by the Central Bureau of Investigation (CBI). According to officials, the alleged arrangement involved a nexus between builders and banks under which homebuyers were offered a ‘No EMI till possession’ scheme. Buyers obtained housing loans and booked flats or apartments in the developers’ projects, but possession was allegedly not handed over even after several years. The ED’s investigation is being conducted under the Prevention of Money Laundering Act (PMLA).
The Enforcement Directorate (ED) conducted searches at multiple locations across Delhi-NCR on Thursday as part of a money laundering investigation into two alleged cases of homebuyer cheating involving subvention schemes, officials said on Friday. The probe concerns real estate companies AVJ Developers (India) and Rudra Buildwell Construction and originates from two separate FIRs registered by the Central Bureau of Investigation (CBI).
The searches were undertaken in connection with an investigation under the Prevention of Money Laundering Act (PMLA). According to officials, the case relates to an alleged nexus between builders and banks through subvention schemes that resulted in homebuyers being cheated.
The ED's investigation covers allegations against AVJ Developers (India) and Rudra Buildwell Construction in relation to the manner in which these schemes were offered to prospective homebuyers. The agency's case stems from two separate CBI FIRs concerning the alleged conduct of the developers and associated parties.
The underlying CBI investigation found that homebuyers and investors were allegedly induced to purchase properties through a ‘No EMI till possession’ arrangement. Under the scheme, buyers obtained housing loans and booked flats or apartments in projects being developed by the companies.
According to the findings cited by officials, buyers were assured that they would not have to bear equated monthly instalments (EMIs) until they received possession of their homes. However, possession of the booked properties was allegedly not provided even after several years.
The alleged delay in handing over the homes forms part of the circumstances being examined in the money laundering investigation. The ED is examining the alleged builders-bank nexus and the financial transactions associated with the subvention arrangements under the PMLA.
The two FIRs registered by the CBI form the basis of the ED's case. The CBI investigation had identified allegations that the developers' schemes resulted in homebuyers and investors being deceived after they took housing loans and purchased units in the companies' projects.
The searches across Delhi-NCR represent the latest action in the investigation. The ED's inquiry is focused on the alleged financial aspects of the arrangements and the transactions arising from the subvention schemes.
The case highlights allegations surrounding housing finance arrangements in which developers and lenders offered buyers schemes linked to payment of EMIs until possession. In the cases under investigation, buyers are alleged to have taken loans and booked homes but remained without possession for several years.
The ED is investigating the matter under the PMLA following the registration of the underlying CBI cases. The agency's searches form part of the ongoing probe into the alleged cheating of homebuyers and the financial transactions connected with the two cases.
Source - PTI
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