In a major crackdown on real estate fraud in the National Capital Region (NCR), the Central Bureau of Investigation (CBI) has registered 22 cases against various builders and unknown officials of financial institutions, following directions from the Supreme Court. The cases relate to large-scale cheating of thousands of homebuyers under the now-controversial subvention loan schemes.
The agency also conducted searches at 47 locations across Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, and other NCR cities, seizing several incriminating documents and digital records. The investigation is ongoing.
Thousands of aggrieved homebuyers had moved the Supreme Court through Special Leave Petitions (SLPs), complaining that they were being forced to repay EMIs on home loans despite not receiving possession of their flats. The court found that several builders had defaulted on their commitment to pay EMIs under tripartite subvention agreements, after which banks shifted the burden onto buyers.
In April 2025, taking serious note of this practice, the apex court directed the CBI to register seven preliminary enquiries (PEs) into the alleged collusion between builders and financial institutions.
SC finds prima facie evidence of fraud, orders full-scale probe
A bench of Justices Surya Kant and N Kotiswar Singh, upon reviewing CBI's status report in six completed enquiries, permitted the agency to convert those PEs into 22 regular cases involving cognisable offences.
The Supreme Court observed a “prima facie unholy nexus” between banks, builders, and even officials of development authorities in duping buyers through fraudulent subvention loan schemes. In these schemes, banks disbursed sanctioned loan amounts directly to builders, who were to pay EMIs until possession, a promise they often failed to fulfil.
Builders and development authorities under CBI lens
The CBI probe encompasses several prominent developers and real estate projects in the NCR cities of Noida, Greater Noida, Gurugram, and Ghaziabad. Development authorities in Uttar Pradesh and Haryana are also under the scanner. In one instance, Supertech Ltd alone was found to have received over Rs 5,157.86 crore in loans since 1998, according to the amicus curiae’s report.
Corporation Bank, now merged with Union Bank of India, had allegedly advanced more than Rs 2,700 crore to builders under subvention schemes.
SC lauds CBI efforts, sets timeline for remaining probe
The bench appreciated the CBI’s effort in understanding the scale of the scam, noting that the agency had visited 58 project sites and examined over 1,000 persons. It gave the agency six weeks to complete the seventh pending preliminary enquiry, which pertains to projects outside NCR, including cities like Mumbai, Kolkata, Mohali, Bangalore, and Allahabad.
(With PTI inputs)
