Central bureau of investigation (CBI) has filed a chargesheet in a major home-buyers' fraud case, naming multiple real estate firms, their directors, bank officials and alleged proxy buyers for their roles in a criminal conspiracy that caused losses to financial institutions and unsuspecting homebuyers.
The charge-sheet has been filed against AVJ Developers (India) Pvt Ltd, AVJ Developers Pvt Ltd, and Kesar Builders Pvt Ltd, along with their directors, as well as officials of Bank of India, ICICI Bank, UCO Bank, and several private individuals acting as proxy home-buyers.
According to the agency, its investigation revealed that the builder companies, in collusion with public servants and other private persons, allegedly lured home-buyers and investors with false assurances and fraudulent representations to secure financial gains through illegal means.
The probe further found that certain bank officials abused their official positions by facilitating loan disbursals in violation of established norms, thereby extending undue pecuniary advantage to the builders and causing corresponding losses to lenders and buyers.
In a key finding, CBI says some private individuals acted as proxies or fictitious home-buyers, misrepresenting facts before financial institutions to obtain housing loans. These loans were allegedly used to benefit the builder companies, with Kesar Builders identified as a sister concern used for routing funds.
The charge-sheet has been filed before a competent court under provisions of the Indian Penal Code and the Prevention of Corruption Act. The allegations include criminal conspiracy, cheating, criminal breach of trust, forgery for the purpose of cheating and use of forged documents, along with criminal misconduct by public servants.
The agency says it has gathered substantial documentary and oral evidence pointing to a wider conspiracy involving diversion and misutilisation of funds and fraudulent conduct targeting home-buyers.
So far, the agency has registered around 50 cases against builders and unidentified officials of financial institutions. Charge-sheets have already been filed in three cases involving Rudra Buildwell Constructions Pvt Ltd, Dream Procon Pvt Ltd and Jaypee Infratech Ltd.
Earlier, the Supreme Court had flagged an 'unholy nexus' between developers and banks, noting that home-buyers were left paying equated monthly instalments (EMIs) for projects that were either delayed or never completed.
The investigation also covers alleged violations of lending norms during 2013–2015, when banks are believed to have disbursed a large portion of sanctioned loans without verifying construction progress.
In April 2026, CBI expanded its crackdown by registering 22 fresh cases and conducting searches at 77 locations across eight states and Union Territories (UTs), seizing documents and digital evidence linked to suspected financial irregularities.
The probe was triggered by complaints from thousands of home-buyers, particularly in the National Capital Region (NCR), who alleged collusion between builders and banks under interest subvention schemes that later collapsed.
CBI says further investigation in the present case is ongoing, reiterating its commitment to ensuring accountability in economic offences and protecting the interests of home-buyers affected by fraudulent real estate practices.
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