Investigation Gathers Pace After Supreme Court Permission
Three days ago, the Supreme Court permitted the CBI to register 22 cases against builders and their colluding banks who defrauded homebuyers in the NCR. This permission was granted based on preliminary investigations where the CBI found cognisable offences. Earlier, in March 2025, the court had allowed preliminary investigations into five major cases. The investigating agency informed the court that irregularities and fraud committed by builders and financial institutions had been confirmed, necessitating a detailed investigation.
Big Builders, Big Questions
All major builders in Noida and Greater Noida are under the CBI’s scanner. Some of these builders have had close ties with previous state governments. The CBI has already inspected these builders’ projects and conducted thorough document checks in some cases. According to CBI sources, most of these projects are incomplete, and flat buyers have been waiting for possession for years. Now, layers of financial irregularities and fraud are being uncovered in these projects.
Crores Swindled Under the Guise of Subsidy Schemes
The alleged subsidy scheme formed the core of this scam. Under this scheme, banks approved loans in the names of buyers, but the money went directly into the builders’ accounts. The condition was that the builder would pay the EMIs until possession of the flats was given. However, the builders stopped paying the installments after some time. Subsequently, banks, citing a tripartite agreement, sent notices to buyers demanding payment of installments. In many cases, buyers were even threatened with being declared defaulters, despite not receiving their flats or possession. This process has plunged thousands of middle-class families into financial and mental distress.
