CBI Raids 77 Locations In Builder-Bank Nexus Probe, Registers 22 New Cases
CBI raids 77 locations and files 22 cases in nationwide probe into builder-bank subvention scam affecting homebuyers.
The Central Bureau of Investigation (CBI) on Tuesday carried out nationwide searches at 77 locations across eight states and Union Territories and registered 22 new cases in connection with an alleged builder-bank nexus involving “subvention” home loan schemes. The action follows directions from the Supreme Court to probe complaints of large-scale fraud affecting homebuyers.
According to officials, the cases involve alleged collusion between real estate developers and certain financial institution representatives, resulting in cheating and financial losses to homebuyers. The CBI stated that the total number of cases registered in the ongoing investigation has now risen to 50, including 28 cases filed earlier against various developers and financial entities.
The agency conducted extensive searches as part of a coordinated nationwide operation aimed at gathering evidence. During the raids, investigators reportedly seized documents, electronic devices, and other materials, which are currently being analysed. Officials said the objective is to uncover possible financial irregularities, diversion of funds, and wider conspiracies linked to fraudulent practices in the housing sector.
Also Read: Anil Ambani to Cooperate Fully With CBI in SBI Loan Fraud Investigation
The investigation stems from multiple petitions filed by over 1,200 homebuyers, which were heard by the Supreme Court in April 2025. The petitioners alleged that banks sanctioned large loans to builders under subvention schemes even before construction began. When projects were delayed or stalled, banks allegedly began demanding Equated Monthly Instalments (EMIs) directly from the homebuyers, despite developers being responsible for payments during the construction period.
Under subvention schemes, homebuyers typically make an initial payment of 5% to 20%, while banks disburse the remaining loan amount directly to developers in stages. Developers are expected to service the interest payments during the construction phase until possession is handed over. The CBI probe is now focused on determining whether this arrangement was misused through coordinated wrongdoing between builders and financial institutions.
Also Read: SC Orders States To Act Immediately On Increasing Child Trafficking Cases
