NEW DELHI: The Enforcement Directorate (ED) has initiated 22 cases under the anti-money laundering statutes to probe the alleged “unholy nexus” between builders and banks responsible for defrauding homebuyers in the national capital region (NCR), according to officials.
The cases, filed under the Prevention of Money Laundering Act (PMLA), arise from an equal number of FIRs by the CBI issued at the end of July, following directives from the Supreme Court.
The ED emphasizes that these cases involve significant public interest, with numerous homebuyers allegedly victimized. Investigations will focus on uncovering fraud, corruption, and money laundering activities by builders, banks, and associated individuals, with plans to seize illicitly acquired assets, as reported by sources to PTI.
There is a provision for asset restitution under the PMLA, which the ED aims to implement wherever applicable, sources indicated.
The CBI’s FIRs included names like Jaypee Sports International Ltd, Jaiprakash Associates Ltd, Ajnara India Ltd, Vatika Ltd, Jaypee Infratech Ltd, Supertech, and Idea Builders, among others.
Additionally, various banks and financial institutions such as the State Bank of India, Indiabulls Housing Finance Ltd, Piramal Finance, HDFC Bank, ICICI Bank, Tata Capital Housing Finance, and PNB Housing Finance Ltd have been implicated in the CBI’s FIRs.
The accused listed in the ED’s 22 Enforcement Case Information Reports (ECIRs) mirror those in the CBI’s cases, as agency sources noted. An ECIR serves as the ED’s counterpart to a CBI or Police FIR.
The CBI’s actions came at the urging of a Supreme Court bench comprising Justices Surya Kant and N Kotiswar Singh, which sanctioned the transition of six preliminary inquiries into 22 formal cases for deeper investigation.
The focus of these cases centers around a subvention scheme initiated by banks and financial institutions, wherein sanctioned loan amounts were disbursed directly to developers, who were then responsible for paying EMIs until buyers took possession of their flats. However, widespread defaults by developers led banks to demand repayments from buyers prematurely.
The Supreme Court commended the CBI’s preliminary investigation, noting that the agency scrutinized over 1,000 individuals and conducted site visits at 58 project locations as part of its efforts.
This inquiry was prompted by a series of petitions from more than 1,200 homebuyers who secured flats under the subvention plans in various NCR housing projects, particularly in Noida, Greater Noida, and Gurugram.
The petitioners allege that financial institutions are pressuring them to make EMI payments despite not having received their flats.
“The Hon’ble Supreme Court acknowledged the unholy nexus between builders and financial institutions in defrauding homebuyers through the introduction of the ‘Subvention Scheme’ for home loans. In April 2025, the court directed the CBI to register seven Preliminary Enquiries (PEs),” stated a CBI spokesperson.
