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In a major development in the justice struggle of homebuyers, the Central Bureau of Investigation (CBI) has registered 22 First Information Reports (FIRs) against multiple real estate developers and unknown bank officials in the National Capital Region (NCR), following directives from the Supreme Court of India over alleged cheating, collusion and a systemic fraud in housing projects.
The action comes after the Supreme Court observed what it described as an “unholy nexus” between builders and financial institutions in relation to subvention home-loan schemes, severely prejudicing thousands of homebuyers who have paid loans and EMIs for flats that remain undelivered even years after promised possession dates.
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Background: Supreme Court’s Directive to CBI
The Supreme Court had, in April 2025, flagged serious concerns about possible collusion between developers and banks over irregularities in the subvention scheme of home loans — an arrangement where banks directly release loan amounts to builders who then promise to service the EMIs until handover of flats to buyers.
The apex court, acting on petitions filed by over 1,200 aggrieved homebuyers from Noida, Greater Noida, Gurugram, Ghaziabad and other NCR areas, had ordered the CBI to conduct seven Preliminary Enquiries (PEs) to ascertain whether cognisable offences were financially or criminally made out.
CBI Registers 22 FIRs Across NCR
After completing six out of the seven PEs within three months, the CBI submitted its status report to the Supreme Court. Upon review, the Court directed the agency to convert its findings into formal criminal cases and proceed with deeper investigations.
On July 30, 2025, the CBI registered 22 FIRs against builders active in the NCR and unknown functionaries of financial institutions who were allegedly part of the collusive network. The move marked a transition from inquiry to prosecution-oriented action in cases where prima facie evidence of fraudulent conduct has been found.
Following the registration of FIRs, CBI teams also conducted searches at 47 premises linked to the accused across Delhi, Gurugram, Noida, Greater Noida and Ghaziabad, seizing incriminating documents and digital evidence to support ongoing investigations.
Named Builders in the FIRs
Among the prominent real estate firms named in the FIRs are:
- Supertech Limited
- Earthcon Universal Infratech Pvt. Ltd. (Casa Royale)
- Bulland Buildtech Pvt. Ltd. (Bulland Elevates)
- Rudra Buildwell Construction Pvt. Ltd. (KBNOWS Apartments)
- Logix City Developers Pvt. Ltd. (Blossom Zest)
- Jaypee Infratech Ltd. (Orchards)
- Ajnara India Ltd. (Ajnara Ambrosia)
- Jaypee Sports International Ltd./Jaiprakash Associates Ltd. (Kove & Kassia Projects)
The inclusion of these developers reflects the breadth of projects and homebuyers affected by the alleged fraudulent schemes in the region.
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What Homebuyers Faced
Under the subvention scheme, homebuyers were led to believe that their Equated Monthly Instalments (EMIs) would be borne by the developer until the flats were ready for possession. However, with multiple projects stalled or delayed for years, banks began demanding full repayments from homebuyers even when possession was not delivered — forcing buyers to pay EMIs on undelivered property.
This situation created a financial trap where buyers continued servicing loans without receiving the homes they had paid for, leading to widespread distress and litigation that eventually reached the apex court.
Legal and Public Impact
The Supreme Court’s intervention and the subsequent filing of FIRs signal judicial recognition of serious criminal and financial irregularities embedded in the builder-bank nexus under subvention arrangements. Experts say the CBI’s probe — supported by searches and seizures of documents — is a significant step toward uncovering systemic fraud affecting thousands of homebuyers and may lead to charges under criminal law, including cheating and criminal conspiracy, as well as violations of financial and banking regulations.
For many homebuyers who have lived with stalled projects for years, the CBI’s action offers a potential legal pathway to accountability and recovery, although the investigation is still underway and will likely involve prolonged litigation and forensic examination of financial trails.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
