In one of its most expansive crackdowns on the real estate sector, the Central Bureau of Investigation (CBI) on Tuesday conducted simultaneous raids at 77 locations across eight states and Union Territories.
The massive operation follows the registration of 22 fresh First Information Reports (FIRs) against several prominent real estate developers and officials of various financial institutions.
The raids are part of an intensifying probe into a suspected “unholy nexus” between builders and banks that allegedly defrauded thousands of innocent homebuyers of their life savings.
The Nationwide Crackdown
The coordinated search operations spanned across Delhi-NCR, Uttar Pradesh, Haryana, Rajasthan, and several other states. According to a CBI spokesperson, the agency seized a wealth of incriminating evidence, including: Digital devices and encrypted storage drives.
Financial documents related to loan disbursements, Property papers and investment records.
With these 22 new cases, the total number of FIRs in this specific investigation has now climbed to 50. The agency had previously registered 28 cases last year.
The Scam: Subvention Scheme Fraud
The core of the investigation revolves around the controversial ‘Subvention Schemes.’ Under these arrangements, a tripartite agreement is signed between the homebuyer, the bank, and the developer. The buyer pays a small upfront amount, while the bank disburses the bulk of the loan directly to the builder.
The builder is then obligated to pay the interest (EMIs) until the project is completed and handed over.
However, the CBI probe triggered by a 2025 Supreme Court order revealed that: Premature Disbursement: Banks allegedly disbursed massive sums to builders even before projects had physically commenced.
Fund Diversion: Instead of using the money for construction, developers allegedly diverted these funds to other projects or shell companies.
Homebuyers Held Ransom: When developers defaulted, banks turned their pressure on the homebuyers, demanding they pay EMIs for flats that existed only on paper.
*Supreme Court’s Intervention
The crackdown follows a wave of over 170 petitions filed by more than 1,200 homebuyers. In April 2025, the Supreme Court took a stern view of the situation, observing that banks had violated RBI’s 2013 guidelines by releasing 70-80% of sanctioned loans without verifying construction milestones.
The Apex Court directed the CBI to form a Special Investigation Team (SIT) and work alongside the RBI and the Union Housing Ministry to unravel the larger conspiracy.
Big Names Under Scrutiny
While the CBI is currently examining the seized material, sources indicate that several high-profile developers, including those linked to projects in Noida, Greater Noida, and Gurugram, are under the scanner. The Enforcement Directorate (ED) is also expected to initiate a parallel money-laundering probe based on these new FIRs.
What’s Next?
A CBI spokesperson stated that the current priority is to “unravel the larger conspiracy involving the diversion of funds and fraudulent practices.” For the thousands of homebuyers currently paying for “ghost homes,” this latest action offers a glimmer of hope that the perpetrators both in the boardroom and the bank will finally be held accountable.
