New Delhi | Builder-Banker Nexus — In a significant development aimed at protecting homebuyers, the Central Bureau of Investigation (CBI) has registered 22 FIRs to probe the alleged nexus between real estate builders and banks in the National Capital Region (NCR). This massive crackdown follows a directive from the Supreme Court, which took serious note of the systematic fraud that has financially devastated thousands of homebuyers.
Searches Conducted at 47 Locations
The CBI, under its Economic Offences Wing, launched coordinated searches across 47 locations in Delhi, Noida, Greater Noida, Gurugram, and Ghaziabad. These raids have reportedly yielded incriminating documents and digital evidence.
A senior CBI spokesperson confirmed that the searches were part of the newly registered FIRs stemming from six earlier preliminary enquiries against developers and financial institutions. The Supreme Court, through a bench comprising Justices Surya Kant and N Kotiswar Singh, authorized the agency to convert the enquiries into regular investigations.
Big Names Under the Scanner
Prominent real estate firms named in the FIRs include:
- Jaypee Sports International Ltd
- Jaypee Infratech Ltd
- Jaiprakash Associates Ltd
- Supertech Ltd
- Vatika Ltd
- Ajnara India Ltd
- Idea Builders
The CBI has also included several top banking and financial institutions in its FIRs. These include:
- State Bank of India (SBI)
- Indiabulls Housing Finance Ltd
- Piramal Finance
- HDFC Bank
- ICICI Bank
- Tata Capital Housing Finance
- PNB Housing Finance Ltd
The Core of the Scam: Subvention Scheme Abuse
The investigation revolves around a widely misused subvention scheme. Under this model, banks disbursed full loan amounts directly to developers on behalf of homebuyers, while the builders were supposed to pay EMIs until the property was handed over.
However, when developers defaulted on EMI commitments, banks began to chase innocent homebuyers for repayment—even though they never received possession of their homes. This left thousands of families burdened with financial liabilities and no homes.
Over 1,000 Individuals Examined
Highlighting the scale of the fraud, the CBI told the Supreme Court that it had already examined over 1,000 people and visited 58 project sites. These findings established a pattern of systemic collusion between builders and bankers, which warranted deeper criminal investigation.
Supreme Court Lauds CBI’s Efforts
The apex court commended the CBI’s efforts to unravel the complex layers of the alleged fraud. The judges noted that the agency had taken a methodical and data-driven approach, ensuring that homebuyers’ interests remain safeguarded.
This investigation marks a turning point in the fight for justice for homebuyers in India. The FIRs and ongoing probes promise to hold both builders and financial institutions accountable, and could lead to long-overdue regulatory reforms in the real estate sector.
As the CBI digs deeper, this case may become a landmark in addressing white-collar crime in the housing sector.