The Directorate of Enforcement on Wednesday conducted searches at multiple premises of real estate companies across Delhi-NCR in connection with a money laundering investigation linked to an alleged homebuyer fraud under the “No EMI Till Possession” subvention scheme.
The searches were carried out by the ED’s Delhi Zonal Office-I under the Prevention of Money Laundering Act at at least five premises associated with CHD Developers Ltd., Ninex Developers Ltd., Manju J Homes (India) Ltd. and others. Officials examined financial records, banking transactions and project-related documents during the operation.
CBI Cases Form Basis of ED Probe
The ED investigation is based on three First Information Reports registered by the Central Bureau of Investigation in July 2025 following directions issued by the Supreme Court of India.
According to the CBI’s preliminary findings, certain builders allegedly misled thousands of homebuyers and investors through the subvention scheme. Under the arrangement, buyers were allegedly assured that they would not have to pay equated monthly instalments until possession of their flats was handed over.
Relying on these assurances, many homebuyers obtained housing loans from banks to purchase residential units. However, several buyers allegedly neither received possession of their flats nor saw the projects completed within the promised timelines, despite the passage of several years.
Agency Examines Fund Diversion
The ED suspects that funds collected from homebuyers and housing loans were diverted to other projects or used for purposes unrelated to the housing projects for which they were originally raised. If established, such diversion would amount to proceeds of crime under the PMLA.
During the searches, the agency scrutinised financial documents, banking records, fund flow details, investment records and electronic evidence. Investigators are working to trace the alleged movement of funds and identify individuals or entities that may have benefited from the transactions.
According to sources, the probe is focused on whether the money collected from homebuyers and financial institutions was used for the intended projects or diverted to other business activities and unrelated developments. Further legal action may follow if the allegations are substantiated.
Homebuyers Face EMI and Rent Burden
The case is significant for thousands of homebuyers affected by delayed real estate projects and subvention schemes. Many purchasers have continued to face the dual burden of paying EMIs and house rent while awaiting possession of their homes.
The ED said documents and digital evidence collected during the searches will be analysed as part of the ongoing investigation. Further action, including tracing the flow of funds, identifying assets and examining the role of those involved, will be taken on the basis of evidence gathered during the probe.
