After the Supreme Court orders an investigation into builders and financiers suspected of defrauding homeowners via subvention programs, the CBI searches 12 sites in Kolkata, Bengaluru, and Mumbai.
After filing six fresh cases against builders and financial institution executives suspected of defrauding homeowners, the Central Bureau of Investigation (CBI) conducted searches at 12 sites in Kolkata, Bengaluru, and Mumbai on Saturday, authorities informed PTI.
The Supreme Court’s orders to look into a possible connection between developers and lenders that allegedly took advantage of unwary purchasers via dubious house loan schemes prompted the new move, which also involves the seizure of papers and digital recordings.
Which businesses are being investigated?
The businesses listed in the FIRs are as follows:
Ithaca Estate Pvt. Ltd., LGCL Urban Homes, and Ozone Urbana Infra Developers Pvt. Ltd. are situated in Bengaluru.
ACME Realties Pvt. Ltd. and Shashwati Realty Pvt. Ltd., both located in Mumbai and have projects in Bengaluru
Based in Kolkata, MKHS Housing LLP
Unknown financial institution executives who allegedly conspired with builders are also named in the charges.
The central “subvention program” in the case
The Supreme Court has referred to the so-called “Subvention Scheme” of house loans as a “unholy nexus” between bankers and builders, which is the center of the debate.
This is how the plan operated: builders promised to pay EMIs until the house was delivered, luring homeowners in. However, banks betrayed customers by requesting payment for unfinished or delayed projects when developers failed.
The Supreme Court received complaints from thousands of customers, many of whom were in dire need of money, alleging forceful collection proceedings and fraud.
The Supreme Court’s directive to the CBI
The top court ordered seven preliminary inquiries (PEs) into such activities in April 2025, directing the CBI to do further research. Based on six PEs, the agency had already filed 22 cases in the Delhi-NCR area and provided the court with a progress report.
After completing the seventh investigation, which concentrated on builders outside of the National Capital Region, the CBI presented its findings to the court. The Supreme Court ordered the agency to file six routine cases against builders in Mumbai, Bengaluru, and Kolkata after analyzing the report.
Raids conducted in accordance with SC directives
According to a CBI spokeswoman, the new FIRs and searches strictly adhere to the Supreme Court’s orders.
The search is still ongoing. During searches, a number of incriminating papers and other digital technological evidence were found, the spokesman informed PTI.
As the CBI deepens its investigation into house loan frauds that have eroded buyer trust in India’s real estate market, the action portends a broader crackdown that may attract other developers and financiers from other states.