Following a Supreme Court directive, the Central Bureau of Investigation (CBI) has officially launched its investigation into 24 controversial real estate projects across Noida, Greater Noida, and the Yamuna Expressway region. The inquiry primarily concerns large-scale irregularities in home loans disbursed under the government’s subsidy scheme, where thousands of homebuyers have been left paying EMIs for flats that were never delivered.
On Friday, the CBI team conducted a raid at the Jaypee Group’s marketing office in Noida Sector 128, seizing documents and records as part of its fact-finding mission. The raid was conducted with the support of CRPF personnel and local police, underscoring the seriousness and scale of the investigation.
The CBI had earlier requested detailed data on the projects from local development authorities—9 from Noida Authority, 11 from Greater Noida Authority, and 4 from Yamuna Expressway Industrial Development Authority (YEIDA)—including layout plans, financial approvals, registry records, and builder compliance reports.
Home Loan Scheme Misused: Builders Defaulted on EMIs, Buyers Left Stranded
The investigation centers around a subsidized home loan scheme, where banks directly transferred loan amounts to builders, and in return, builders were responsible for paying EMIs and interest on behalf of homebuyers until possession. The system was meant to ease financial burdens on customers during construction. However, in numerous instances, builders stopped paying the agreed EMIs, defaulted on interest payments, and failed to hand over possession of flats, leaving buyers burdened with loan repayments despite receiving no property.
This alleged malpractice resulted in financial stress and legal chaos for thousands of families. Complaints were filed across the region, eventually culminating in the Supreme Court ordering a CBI-led investigation to uncover the extent of the fraud.
Sources suggest that some builders used the funds to invest in other commercial ventures, while diverting homebuyer money and halting construction mid-way.
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More Builders Likely to Face Action in Coming Days
The raid on Jaypee Group’s office is just the beginning, sources within the investigative agency say. The CBI is likely to expand its search and seizures to other developers named in the initial complaints. The documentation collected from Noida and Greater Noida Authorities includes comprehensive information about project status, completion certificates, and buyer grievances.
This investigation is expected to trigger wider reforms and regulatory scrutiny across the real estate sector in Uttar Pradesh, especially in areas like Noida and Greater Noida, which have become infamous for delayed housing projects and builder defaults.
For now, the spotlight remains on Jaypee Group, whose real estate track record has already drawn sharp criticism in the past, particularly in connection with incomplete projects and insolvency proceedings.
The CBI’s entry into the scene has reignited hope among defrauded homebuyers, who have long awaited justice and transparency in the delivery of their long-promised homes.