In a significant move to crack down on real estate fraud, the Central Bureau of Investigation (CBI) has registered 22 FIRs against prominent builders in the National Capital Region (NCR). These cases pertain to a massive Subvention Scheme fraud in which thousands of innocent homebuyers were allegedly deceived through illegal loan practices in collaboration with financial institutions.
Massive Operation Targets Builders and Bank Officials
The CBI launched coordinated search operations across 47 locations, including Delhi, Gurugram, Noida, Greater Noida, and Ghaziabad. During these raids, the agency seized incriminating documents and digital evidence, highlighting a widespread network of builder-financier collusion under fraudulent subvention loan schemes.
This action follows multiple complaints from homebuyers, who alleged they were misled into risky financial agreements under the false promise of delayed EMI or “No EMI till possession” schemes.
Supreme Court’s Intervention and Timeline
H3: SLPs Filed by Homebuyers
The case gained traction after Special Leave Petitions (SLPs) were filed in the Supreme Court. These petitions accused financial institutions of taking coercive recovery steps, even when subvention terms were still in force.
CBI Begins Preliminary Investigation
Acting on the Court’s directive, the CBI initiated seven preliminary enquiries in April 2025. Within just three months, six of these were completed, and a detailed status report was submitted to the apex court.
H3: Registration of 22 Regular Cases
Based on the CBI’s findings, the Supreme Court ordered the registration of 22 regular FIRs against various builders and unidentified financial institution officials for their role in the subvention scam.
What Is the Subvention Scheme Fraud?
The subvention scheme was designed to ease home loan burdens during the construction phase. However, many builders allegedly stopped paying EMIs mid-way, pushing the burden onto unsuspecting buyers. The CBI’s report exposes how builders collaborated with banks to mislead buyers by hiding loan disbursement clauses and project delays.
Implications for the Real Estate and Finance Sector
This large-scale investigation is likely to reshape real estate regulations and increase financial scrutiny in home loan disbursement. Key outcomes may include:
Stricter monitoring of loan-based housing schemes
Improved transparency in builder-financer agreements
Consumer protection reforms for vulnerable homebuyers
The investigation is still ongoing, and further arrests and disclosures are expected in the coming weeks.
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