Builder-bank nexus probe: CBI registers 22 new cases, raids 77 locations across 8 states

E-PaperSubscribeSubscribeEnjoy unlimited accessSubscribe Now! Get features like The Central Bureau of Investigation (CBI) has registered 22 fresh cases in its ongoing probe into a suspected “unholy nexus” between builders and financial institutions in sanctioning large sums under subvention schemes without due diligence, and conducted raids at 77 locations in eight states on Tuesday, the agency’s spokesperson said. CBI registers 22 new cases, raids 77 locations across 8 states. (PTI)The federal anti-corruption agency has, so far, registered a total of 50 cases in the matter. Last year, 28 cases were filed against various real estate companies and financial institutions. “On Tuesday, extensive searches were carried out at 77 locations spread across eight states/Union Territories in connection with these 22 cases. They relate to an alleged nexus between certain builders and officials of financial institutions, leading to the cheating and defrauding of innocent homebuyers. These coordinated search operations conducted across different states are part of a nationwide crackdown. Searches have resulted in the seizure of incriminating documents, digital devices and other materials, which are being examined,” a CBI spokesperson said. Also read | CBI books EPFO official for illegally amassing ₹61.55 lakh “The action is aimed at gathering crucial evidence to unravel the larger conspiracy involving alleged diversion of funds, financial irregularities, and fraudulent practices in the housing real estate sector,” the spokesperson added. In April 2025, the Supreme Court ordered a CBI probe following over 170 petitions filed by more than 1,200 homebuyers, who alleged that banks had disbursed large loans to builders under subvention schemes even before projects had commenced. After developers defaulted, banks began demanding equated monthly instalments (EMIs) from the homebuyers to recover the loan amounts. Also read | CBI asks time to take up further probe in ex-minister murder case Subvention schemes typically involve a tripartite agreement between the buyer, the bank and the developer. Under these arrangements, buyers pay between 5% and 20% upfront, while banks disburse the remaining loan amount to the developer in stages. The developer is expected to service the interest on the loan for a fixed period, usually two to four years, until possession is handed over, after which the buyer begins repaying the loan through EMIs. Based on the 28 FIRs registered by the CBI last year, the Enforcement Directorate had also initiated a parallel money laundering probe into the matter and is now likely to take up the fresh 22 cases as well, officials said.