The Central Bureau of Investigation (CBI) registered 22 fresh cases in its ongoing probe into a suspected “unholy nexus” between construction companies and financial institutions in sanctioning huge sums under subsidy schemes without due diligence, and conducted raids on 77 locations in eight states on Tuesday, the agency’s spokesperson said.
The Federal Anti-Corruption Agency has so far registered a total of 50 cases in this regard. Last year, 28 cases were filed against various real estate companies and financial institutions.
“On Tuesday, massive searches were conducted at 77 locations spread across eight states/union territories in connection with these 22 cases. They relate to an alleged nexus between some builders and officials of financial institutions, which led to cheating and defrauding innocent homebuyers. The coordinated searches conducted across various states are part of a nationwide crackdown,” a CBI spokesperson said. The searches resulted in the confiscation of incriminating documents, digital devices and other materials, which are being examined.”
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The spokesman added: “The action aims to collect crucial evidence to uncover the larger conspiracy involving alleged transfer of funds, financial irregularities, and fraudulent practices in the residential real estate sector.”
In April 2025, the Supreme Court ordered a CBI probe following over 170 petitions filed by over 1,200 homebuyers, who alleged that banks disbursed large loans to construction companies under subsidy schemes even before the projects began. After developers defaulted, banks started demanding equal monthly installments from homebuyers to recover loan amounts.
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Support plans usually include 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 specified period, usually two to four years, until possession is handed over, after which the buyer starts repaying the loan through equal monthly instalments.
Based on the 28 FIRs registered by the CBI last year, the Enforcement Directorate has also initiated a parallel money laundering investigation in the matter and is now likely to look into the 22 new cases as well, the officials said.
