On Supreme Court’s orders, CBI registered 22 FIRs and raided 47 NCR sites in a builder–bank scam. Homebuyers were lured with false promises of “No Pre-EMI till possession”, leaving them cheated and trapped in loans.
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NEW DELHI: The Central Bureau of Investigation (CBI) carried out searches at 47 locations across the National Capital Region (NCR) after the Supreme Court of India ordered an investigation into a large scam involving real estate builders and financial institutions who allegedly cheated hundreds of homebuyers.
The CBI has now registered 22 criminal cases against several famous real estate companies and their senior officials.
Names mentioned in the First Information Reports (FIRs) include Supertech Limited, AVJ Developers (India), Earthcon Universal Infratech, Rudra Buildwell Projects, Geotech Promoters, Shubhkamna Buildtech, Bulland Buildtech, Decent Buildwell, Rudra Buildwell Construction, Saha Infratech, and Dream Procon.
The CBI also named Logix City Developers, Jaypee Infratech, Sequel Buildcon, Ajnara India, Vatika Limited, CHD Developers Limited, Ninex Developers, Jaypee Sports International Limited/Jaiprakash Associates Limited, Idea Builders, and Manju J Homes India Limited in the same investigation.
The case started after many homebuyers from the NCR region went to the Supreme Court complaining that they were being tricked by builders and also being harassed by banks and finance companies. The Court was informed that developers had created and used a “subvention scheme” where they claimed to pay EMIs on behalf of the buyers until the property was delivered, but they did not fulfill this promise.
As the Court noted, the homebuyers were misled using a new loan scheme called “subvention scheme”, and on this basis, the Supreme Court in April 2025 directed the CBI to carry out seven preliminary investigations into the matter.
The CBI told the Court that it had completed six of the seven preliminary enquiries in just three months and submitted a detailed status report. After reading the report, the Supreme Court ordered the agency to move ahead.
“Upon perusal of the status report submitted by the CBI, the Hon’ble SC directed the CBI to register 22 regular cases, against different builders in the NCR area and unknown officials of financial institutions,” said the CBI.
The agency conducted searches at multiple locations in Delhi, Gurugram, Noida, Greater Noida, and Ghaziabad as part of the investigation.
In the specific FIR against Supertech, the CBI said the company worked with banks and finance firms to introduce the subvention scheme for nine residential projects. They advertised these projects with promises like “No Pre-EMI till delivery of possession of residential unit”, which attracted a large number of buyers.
The CBI further stated that while the projects were launched between 2010 and 2017, Supertech began defaulting on the EMI payments from 2018-2019. It neither completed the construction nor kept its promise to pay EMIs till the possession of flats was given. The money paid by homebuyers was also not returned.
Banks started charging EMIs directly from homebuyers even when the builders didn’t deliver the flats. Due to this, many buyers were unable to pay and their loans became Non-Performing Assets (NPAs). Their CIBIL scores were negatively affected, causing long-term financial problems.
The accused in this large scam also include unknown bank officials from several major financial institutions such as:
- Indian Bank (formerly)
- ICICI Bank
- Indiabulls Housing Finance Limited
- HDFC Housing Finance Limited
- PNB Housing Finance
- India Infoline Housing Finance
- L&T Housing Finance
- Aditya Birla Housing Finance
Other banks and financial institutions also being probed in the various FIRs include:
- State Bank of India
- State Bank of Travancore (formerly)
- UCO Bank
- Reliance Housing Finance Limited
- Axis Bank
- Tata Capital Housing Finance
- Diwan Housing Finance Limited
- Central Bank of India
- Samman Capital Limited
- Punjab National Bank
The CBI said that the same type of fraud occurred in many other housing projects across the NCR region, and it will investigate the role of bank officers and others involved in these scams.
LAST HEARING IN APEX COURT
On July 22, the Supreme Court of India, gave the green signal to the Central Bureau of Investigation (CBI) to register 22 criminal cases related to the alleged “unholy nexus” between banks and real estate developers, who have reportedly cheated thousands of homebuyers in the National Capital Region (NCR).
These cases are based on the six preliminary enquiries earlier initiated by the CBI, and they will now be treated as regular First Information Reports (FIRs) to take the investigation further.
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A Bench of Justices Surya Kant and N Kotiswar Singh passed this crucial order.
They said,
“We accept the recommendation and the CBI shall accordingly register regular cases and proceed in accordance with law.”
The court acknowledged the seriousness of the issue, pointing out that builders, banks, and even development authorities in Uttar Pradesh and Haryana were under the scanner.
Some of the real estate companies involved have ongoing projects in Noida, Greater Noida, Gurugram, and other NCR areas.
Under the subvention scheme, the banks disbursed sanctioned home loan amounts directly to builders. In return, the builders were supposed to pay the EMIs on these loans until the homebuyers got possession of their flats.
But many builders defaulted on these EMI payments, after which the banks began demanding the EMIs from the buyers—even though they had not received possession of their homes.
This led to legal action by over 1,200 homebuyers who approached the Supreme Court, saying they were being unfairly forced to pay despite no delivery of flats.
While reviewing the CBI’s sealed report, the bench appreciated the agency’s work and said,
“The court appreciates the efforts of the central probe agency in taking up the matter by understanding the gravity and magnitude of the issue and examining over 1,000 persons, visiting 58 project sites.” The court has also asked the CBI to complete the remaining investigation quickly and “take the matter to its logical conclusion.”
The CBI is still investigating a seventh preliminary enquiry related to projects outside the NCR region. This includes locations like Mumbai, Bangalore, Kolkata, Mohali, and Allahabad. The court granted six more weeks for this part of the probe.
The court also directed Additional Solicitor General Aishwarya Bhati, who appeared for the CBI, to share relevant parts of the sealed report with amicus curiae advocate Rajiv Jain.
The bench said,
“The CBI shall accordingly register regular cases and proceed in accordance with law,”
The Supreme Court observed that the report submitted by amicus curiae Rajiv Jain was an “eye opener” and stressed that it brought to light the urgent need for transparency in the functioning of development authorities, including bodies like RERA.
It also pointed to the importance of ensuring protection for homebuyers against dishonest developers.
Referring to this report, the bench noted,
“We will not entertain those home buyers, who are very few in numbers and would not allow them to misuse the platform of court. We will ask them to move to the appropriate forum and avail whatever legal remedy they have but not this court.”
The next hearing in this matter is expected in the next 10 to 15 days.
Earlier, on March 29, the Supreme Court had given permission to the CBI to conduct five preliminary enquiries into the working of builders in various NCR cities such as Noida, Greater Noida, Gurugram, Yamuna Expressway, and Ghaziabad.
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It also allowed the CBI to register one enquiry into the activities of Supertech Ltd, against whom 799 homebuyers have filed 84 appeals concerning projects in eight cities.
On April 29, the Supreme Court had further directed the CBI to initiate a total of seven preliminary enquiries involving major builders including Supertech Ltd.
While noting the involvement of officials from development authorities, banks, and builders, the court said that there existed a “prima facie nexus” among them across cities like Noida, Gurugram, Yamuna Expressway, Greater Noida, Mohali, Mumbai, Kolkata, and Allahabad.
Advocate Rajiv Jain, in his report to the court, described Supertech Ltd as the “main culprit” behind the large-scale cheating of homebuyers. He also pointed out that Corporation Bank had given out loans of over Rs 2,700 crore to builders through these subvention schemes.
His report further revealed that Supertech Ltd had alone taken loans amounting to ₹5,157.86 crore since 1998.
The court’s latest move marks a significant development in the fight for justice by thousands of homebuyers who were left in financial distress due to the fraudulent practices of builders in collusion with banks.
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It also sends a strong message that powerful institutions like the judiciary are ready to hold all wrongdoers accountable, including banks, developers, and even government authorities.
CASE TITLE:
HIMANSHU SINGH AND ORS. Versus UNION OF INDIA AND ORS.
SLP(C) No. 7649/2023
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