'The unholy nexus': CBI raids builders, financiers in Kolkata, Bengaluru and Mumbai over alleged homebuyer fraud

Apex court-ordered crackdown on ‘subvention scheme’ fraud triggers fresh CBI cases

The Central Bureau of Investigation (CBI) on Saturday carried out searches at 12 locations across Kolkata, Bengaluru and Mumbai after registering six new cases against builders and officials of financial institutions accused of cheating homebuyers, officials told PTI.

The fresh action, which includes the seizure of documents and digital records, comes on the back of Supreme Court directions to investigate a suspected nexus between developers and lenders that allegedly exploited unsuspecting buyers through controversial home loan schemes.

Which companies are under the scanner

According to the FIRs, the companies booked include:

Bengaluru-based Ithaca Estate Pvt. Ltd, LGCL Urban Homes, and Ozone Urbana Infra Developers Pvt. Ltd
Mumbai-based Shashwati Realty Pvt. Ltd (with projects in Bengaluru) and ACME Realties Pvt. Ltd
Kolkata-based MKHS Housing LLP

The cases also name unknown officials of financial institutions who allegedly colluded with builders.

The ‘subvention scheme’ at the heart of the case

The controversy revolves around the so-called 'Subvention Scheme' of home loans, which the Supreme Court has described as an 'unholy nexus' between builders and financiers.

Here’s how it worked: under the scheme, homebuyers were lured with promises that builders would pay EMIs until the property was delivered. But when developers defaulted, banks turned on the buyers, demanding repayment for incomplete or stalled projects.

Thousands of buyers, many of them financially drained, moved the Supreme Court complaining of fraud and coercive recovery actions.

Supreme Court’s order to CBI

In April 2025, the apex court directed the CBI to dig deeper, ordering seven preliminary enquiries (PEs) into such practices. The agency had already registered 22 cases in the Delhi-NCR region earlier, based on six PEs, and submitted a status report to the court.

With the completion of the seventh enquiry, focused on builders outside NCR, the CBI submitted its findings to the court. On reviewing the report, the Supreme Court directed the agency to register six regular cases against builders in Kolkata, Bengaluru and Mumbai.

Raids in compliance with SC orders

CBI spokesperson said the fresh FIRs and raids are in strict compliance with the Supreme Court’s directions.

“Searches are still in progress. Various incriminating documents and some digital electronic evidence have been seized during searches,” the spokesperson told PTI.

The move signals a widening crackdown that could rope in more developers and financiers across states, as the CBI expands its probe into home loan scams that have shaken buyer confidence in India’s real estate sector.