On the directions of the Supreme Court, the Central Bureau of Investigation has filed 22 FIRs exposing a widespread housing finance scam involving leading developers and top financial institutions in the National Capital Region. The alleged conspiracy rooted in fraudulent subvention schemes has left thousands of homebuyers without possession and facing mounting EMI demands, despite developer defaults.The Economic Offences Unit of the agency has registered 22 First Information Reports (FIRs) against some of India’s top realty firms and banks.
Named in the FIRs are prominent real estate players including
- Jaypee Infratech Ltd
- Jaiprakash Associates Ltd
- Ajnara India Ltd
- Supertech Ltd
- Vatika Ltd, and
- Idea Builders, among others.
Equally implicated are major lenders such as
- State Bank of India
- HDFC Bank
- ICICI Bank
- Indiabulls Housing Finance
- Piramal Finance
- Tata Capital Housing Finance, and
- PNB Housing Finance Ltd.
The move comes after the apex court’s division bench, comprising Justices Surya Kant and N. Kotiswar Singh, permitted the CBI to convert six existing preliminary enquiries into regular FIRs, enabling full-scale investigations. The seventh preliminary enquiry, which deals with projects outside the NCR in cities like Mumbai, Bangalore, Kolkata, Mohali, and Allahabad remains under scrutiny.
The Subvention Scheme: A Trap Disguised as Relief
At the heart of the scam is a subvention scheme — a financial arrangement where homebuyers secure loans that are disbursed directly to the builders, who then commit to paying EMIs until the property is handed over. This model was initially marketed as a buyer-friendly mechanism to ease the financial burden during construction phases.
However, in a massive betrayal of trust, several developers defaulted on their EMI commitments while construction stalled or halted altogether. As a result, banks turned to the homebuyers — who never took possession — to recover dues. The victims were left paying for homes that didn’t exist, battling legal notices, and watching their credit scores plummet.
The Supreme Court noted the gravity of the matter in its order, observing that over 1,200 homebuyers had approached the court through various petitions. These cases involved hundreds of projects, particularly concentrated in Noida, Greater Noida, and Gurugram, the high-growth zones of NCR now marred by incomplete skeletons of concrete.
CBI’s Extensive Groundwork: 1,000 Interviews, 58 Sites Visited
Praising the CBI for its thorough groundwork, the Supreme Court highlighted that the agency had examined more than 1,000 individuals and conducted site visits at 58 different housing projects across the region. These efforts helped reveal the scale of deceit and the apparent collusion between builders and financiers.
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Among the most closely watched targets is Supertech Ltd, against whom 799 homebuyers have filed 84 separate appeals. These involve delayed or abandoned projects not just in the NCR, but also in other cities, making it one of the most high-profile components of the investigation.
The apex court has given the CBI six weeks to conclude its inquiry into the seventh and final preliminary enquiry — the one covering projects beyond NCR. Meanwhile, the 22 FIRs mark a watershed moment in India’s real estate and banking accountability, with the potential to reshape how regulatory bodies, financial institutions, and courts approach consumer protection in the housing sector.