NEW DELHI: The Enforcement Directorate (ED) has conducted searches at multiple locations across Delhi-NCR as part of a money laundering investigation into an alleged homebuyers fraud and suspected builder-bank nexus. According to officials, the searches were carried out on Thursday in connection with two separate cases involving alleged cheating of homebuyers through subvention schemes. The agency is examining financial transactions and assets that may be linked to the alleged fraud.
Officials said the ED investigation is being conducted under the Prevention of Money Laundering Act (PMLA). The case involves real estate companies AVJ Developers (India) and Rudra Buildwell Construction. Both companies have been accused of allegedly using subvention schemes in coordination with banks to attract homebuyers to housing projects where possession of booked flats was allegedly not handed over even after several years.
‘No EMI Till Possession’ Scheme Under Scanner
According to the investigation, the alleged fraud centred around the ‘No EMI till possession’ scheme. Under such arrangements, homebuyers are assured that they will not have to pay monthly instalments on their housing loans until possession of the property is handed over.
Relying on these assurances, buyers booked flats in the projects and obtained housing loans from banks. However, the CBI investigation allegedly found that buyers and investors did not receive possession of their homes even after several years.
The delay allegedly left buyers facing significant financial uncertainty. While the promised properties remained undelivered, the loans associated with the purchases continued to remain a financial obligation, raising questions over the management of funds collected for the projects.
The ED is now examining how money raised through housing loans was utilised and whether any funds were allegedly diverted for purposes unrelated to the projects. Bank accounts and financial transactions that may be connected to the alleged builder-bank arrangement are also under scrutiny.
ED Probe Originated From Two CBI FIRs
The ED’s case is based on two separate FIRs registered by the Central Bureau of Investigation (CBI). The preliminary CBI investigation alleged that the concerned real estate companies induced homebuyers and investors to invest in their projects by offering schemes that promised relief from EMI payments until possession.
However, according to the allegations, the promised possession was not provided even after several years.
Based on the findings of the CBI investigation, the ED initiated a probe into the money laundering angle. Under the PMLA, the agency is examining whether proceeds allegedly generated through the underlying offences were concealed, transferred, used or converted into assets or other financial benefits.
Homebuyers Waiting for Possession for Years
One of the central allegations in the case is that buyers booked flats after obtaining housing loans but continued to wait for possession for years. For many buyers, the situation allegedly created a financial burden because the expected property remained unavailable while their associated financial commitments continued.
Investigators are now trying to trace the movement of funds collected for the housing projects. Documents, digital records and financial statements recovered during the searches could help investigators establish the alleged money trail and determine where the funds were ultimately transferred or utilised.
The agency is also examining the financial dealings of the entities and individuals connected with the projects to determine whether any transactions were structured to conceal the alleged proceeds of crime.
Alleged Builder-Bank Nexus Under Investigation
The alleged nexus between the builders and banks is another major focus of the investigation. The ED is examining the role played by various parties in implementing the subvention schemes and whether any financial or procedural violations allegedly took place.
Investigators are also looking at the arrangements under which housing loans were sanctioned and the manner in which payments were made to the developers. The agency is expected to analyse records relating to loan disbursals, project accounts and other financial transactions as the investigation progresses.
The ED has not yet disclosed the complete details of the material or documents allegedly recovered during the searches. Officials said the investigation could provide greater clarity on the alleged money trail, beneficiaries and financial transactions linked to the case.
The matter remains under investigation, and the allegations have not been established as proven facts in court. The ED’s action is expected to intensify scrutiny of the financial transactions and alleged builder-bank links surrounding the housing projects, while homebuyers affected by the delayed possession continue to await resolution.
