FOUNDATION MAGAZINE FINANCIAL ADVICE STOCKLETTERS PORTFOLIO PMS BOOKS
BUY
22 Builders, including Supertech, Vatika, Jayprakash and Unknown Bank Officials Booked by CBI in Home-buyer Fraud Case
Moneylife Digital Team 30 July 2025
Consumer Interest
In a sweeping crackdown on fraudulent housing practices, the central bureau of investigation (CBI) has registered 22 criminal cases against various real estate developers in the National Capital Region (NCR) and unidentified officials of financial institutions for allegedly defrauding thousands of home-buyers. The action follows directions from the Supreme Court which is monitoring the probe into what it termed an 'unholy nexus' between builders and banks.
 
As part of the investigation, CBI conducted searches across 47 locations, including Delhi, Noida, Greater Noida, Gurugram and Ghaziabad. The agency seized incriminating documents and digital evidence in connection with the alleged scam, which centres around subvention schemes that left home-buyers burdened with loan repayments for undelivered or incomplete housing projects.
 
 
The builders booked by CBI include: Supertech Ltd, AVJ Developers (India) Pvt Ltd (AVJ Heights), Earthcon Universal Infratech Pvt Ltd (Casa Royale), Rudra Buildwell Projects Pvt Ltd (Rudra Palace Height), Geotech Promoters Pvt Ltd (Geotech Blessing), Shubhkamna Buildtech Pvt Ltd (Shubhkamna City), Bulland Buildtech Pvt Ltd (Bulland Elevates), Decent Buildwell Pvt Ltd (Shri Radha Aqua Gardens), Rudra Buildwell Construction Pvt Ltd (KBNOWS Apartments), Saha Infratech Pvt Ltd (Amadeus), Dream Procon Pvt Ltd (Victory Ace), Logix City Developers Pvt Ltd (Blossom Zest), Shubhkamna Buildtech Pvt Ltd (Shubhkamna- Advert Tech Homes), JaypeeInfratech Ltd (Orchards), Sequel Buildcon Pvt Ltd (The Belvedere), Ajnara India Ltd (Ajnara Ambrosia), VATIKA Ltd (Vatika Turning Point), CHD Developers Ltd (106 Golf-Avenue), Ninex Developers Ltd (Ninex City), Jaypee Sports International Ltd/ Jaiprakash Associates Ltd (Kove Project/Kassia Project), Idea Builders Pvt Ltd (Red Apple Residency) and Manju J Homes India Ltd for its Red Apple Homez project. 
 
The Supreme Court, acting on petitions filed by aggrieved home-buyers, had, in April 2025, directed CBI to conduct seven preliminary enquiries (PEs) into suspected fraud in housing finance schemes. These schemes, commonly promoted as 'subvention plans', promised that builders would pay equated monthly instalments (EMIs) on behalf of buyers until the possession of their flats. However, when many developers defaulted on these payments around 2018–19, banks began demanding repayment directly from the home-buyers—even as several housing projects remained stalled or unlaunched.
 
Following the Court’s April directive, CBI completed six of the seven preliminary enquiries within three months and submitted its findings. Based on the status report, the Supreme Court ordered the agency to register 22 regular cases against specific builders and unidentified financial institution officials.
 
Thousands of home-buyers across the NCR region had approached the apex court after being left in financial distress—paying EMIs on housing loans while receiving no possession of promised homes. The Court found evidence suggesting that several banks had disbursed up to 70%–80% of sanctioned loan amounts to builders without verifying construction progress, violating Reserve Bank of India (RBI) guidelines issued in 2013.
 
In a hearing earlier this year, the apex court criticised both developers and lenders for their 'blatant disregard' of judicial directions and warned that the reluctance of these entities to cooperate pointed to a deeper collusion. The Court further instructed that no recovery certificates be executed against home-buyers until further orders, offering interim relief to victims of stalled and fraudulent housing projects.
 
Many of the builders named in the case are reportedly undergoing insolvency resolution under the Insolvency and Bankruptcy Code (IBC), complicating the recovery process for affected home-buyers. The Court had also directed about 40 developers and 30 financial institutions to submit compliance affidavits detailing payments, construction progress and expected possession timelines. However, only a few entities responded adequately, reinforcing the need for a central investigation.
 
CBI’s ongoing probe aims to uncover the scale of the fraud, determine the extent of the role played by banking officials, and establish the full impact on the homebuyers. Officials said that further action, including arrests and expanded investigation, may follow based on the evidence collected during searches.
 
The development marks a significant move in holding both builders and complicit financiers accountable in one of the country’s most high-profile real estate scams in recent years. The Supreme Court is expected to continue monitoring the progress of the investigation in the coming months.
 
You may also want to read...
 
 
 
Comments
vs.iyer316
7 months ago
One more builder CBI can add Om Sai Dream Homes, Titwala. His case is pending in Kalyan Court and there is no decision fir the last 10 years. The builder is one Mr. Pote. If required this can be verified from Titwala Police Station, where cimplaint has been lodged by buyers.
Reply
parimalshah1
7 months ago
Why are the banks names not mentioned? Tacit approval to cover the guilty?
Reply
vs.iyer316
7 months ago
There are too many cases pending in small courts against builders and the matter is never taken up and if it is taken up also, there are unnecessary adjournments. The Government should club all the cases and immediate decision to be taken to give justice to the buyers. This can be done by the Apex Court only as there are nexus between builders and politicians and it will drag on if the decision is put on the Government. I am also one of the affected persons and the case is pending for decision in Kalyan Court, Maharashtra, for the last 10 years and the Builder never appeared before the Court.
Reply
ICICI Pru
ICICIBank Coral credit cr
  • EDITORS'
    PICKS
  • MOST
    POPULAR
  • MOST
    READ
Free Helpline
Legal Credit
Feedback
Buy Now!

Absolute Power

Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam

View Options

The Scam: Now in it's 12th Printing

29 Years Of The Scam: The Perennial Bestseller, reads like a Thriller!
#Scam92: Read the actual story.

Buy Now Gift Know More

Moneylife Online Magazine

Fiercely independent and pro-consumer information on personal finance.

1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.

Buy Now Gift Know More

Monthly Digital Access

Fiercely independent and pro-consumer information on personal finance.

30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.

Buy Now Know More

Full Archive access

Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )

Buy Now

Stockletters in 5 Flavours

Outstanding research that beats mutual funds year after year

Buy Now Know More

MAS: Complete Online Financial Advisory

(Includes Moneylife Online Magazine)

Buy Now Know More
We are listening!
Reset
Success!

To continue

Please

or

With