NEW DELHI: The Central Bureau of Investigation (CBI) conducted raids at 77 locations across eight States and Union Territories and registered 22 cases on Tuesday following directions from the Supreme Court to probe the alleged nexus between builders and financial institutions over alleged “subvention plans”.
The cases relate to alleged collusion between certain builders and financial institution officials, resulting in cheating and defrauding homebuyers. The CBI has now registered 50 cases in the matter. Twenty-eight cases were filed last year against various real estate companies and financial institutions.
A CBI official said that extensive searches were conducted across multiple locations as part of a nationwide crackdown. The searches led to the seizure of documents, digital devices, and other materials, which are currently being examined. The agency said the action is aimed at collecting evidence to uncover a larger conspiracy involving diversion of funds, financial irregularities, and fraudulent practices in the housing real estate sector.
In April 2025, the Supreme Court directed the CBI to investigate after more than 170 petitions were filed by over 1,200 homebuyers. The petitioners alleged that banks had disbursed large loans to builders under subvention schemes before projects had begun. When developers defaulted, banks started demanding EMIs from the homebuyers.
Under subvention schemes, a tripartite agreement is signed between the buyer, the bank, and the developer. Buyers pay 5% to 20% upfront, while banks release the remaining loan amount to the developer in stages. The developer is supposed to pay the loan interest for a fixed period, until possession is given.
To uncover conspiracy
The searches led to the seizure of documents, digital devices, and other materials, which are currently being examined. The agency said the action is aimed at collecting proof to uncover a larger conspiracy involving diversion of funds and fraudulent practices in housing real estate sector.