CBI Launches Extensive Investigation into 24 Real Estate Projects Amid Subvention Scheme Fraud
The Central Bureau of Investigation (CBI) has initiated a comprehensive probe into 24 real estate projects in Noida, Greater Noida, and Yamuna Expressway, focusing on alleged financial fraud in subvention schemes that may have affected thousands of homebuyers.
CbiReal EstateSubvention SchemeNoidaSupreme CourtReal Estate MumbaiMay 23, 2025
As part of the investigation, the CBI has requested minute-by-minute records from the Noida, Greater Noida, and Yamuna Expressway authorities. These records include layout plans, sanction letters, dues statements, registry details, and developer information of the identified projects. According to officers, the Noida Authority has been asked to provide documentation for nine projects, such as Supertech's Cape Town in Sector 74, Logix's Blossom Zest in Sector 143, Mahagun Mezzaria in Sector 78, Ajnara Ambrosia in Sector 118, Jaypee Greens Orchard in Sector 131, Shubhkamna Tech Homes in Sector 137, and three projects in Sector 150 by Implex Infrastructure, Sequel Buildcon, and Logix Heights.
The CBI in Greater Noida has sought details of 11 projects, some of which overlap with the list of Noida projects. These projects include Supertech's Ecovillage 2 and 3, and Czar, along with projects by AVJ Heights, Earthcon Universal, Rudra, Geotech, Morpheus Developers, Future World, and Bulland Group. Meanwhile, the Yamuna Expressway Authority has been asked to provide documents for four projects, including Supertech's UP Country in Sector 17A, Oasis Realtech's Grandstand in Sector 22D, and Jaypee Group's Kove and Kassia in Sector 25.
The investigation centers on charges that under the subvention plan, banks extended loans to developers on behalf of homebuyers, with the expectation that developers would pay pre-EMI interest until possession was handed over. However, some developers allegedly failed to make these payments, leaving homebuyers with EMIs on houses that were never delivered. Investigators are also examining whether construction-linked disbursals were extended without verifying project progress, which could have jeopardized buyer interests and breached regulatory guidelines.
The Supreme Court has directed all three development authorities to actively cooperate with the investigation and designate nodal officers. It has also requested the CBI to submit seven preliminary inquiry reports, including one focused solely on Supertech projects, and others covering areas of Gurgaon, Ghaziabad, Mumbai, Bengaluru, Kolkata, Mohali, and Allahabad. For proper coordination, the court has instructed the appointment of deputy secretary-level nodal officers by the Uttar Pradesh and Haryana governments, as well as from the RBI, Real Estate Regulatory Authority (RERA) of the two states, and the Union Ministry of Housing and Urban Affairs.
Furthermore, joint development deals that form the foundation of some of these projects are being scrutinized, with investigators looking into how these deals might have led to financial intricacies and delays. In a separate move, the Allahabad High Court has ordered the CBI and Enforcement Directorate (ED) to probe Sports City projects in Noida Sectors 78, 79, and 150 for financial and legal irregularities. Officials from the Noida Authority have confirmed that all required project details have already been submitted to the CBI for further action.
Frequently Asked Questions
What is the CBI investigating in the real estate projects?
The CBI is investigating 24 real estate projects in Noida, Greater Noida, and Yamuna Expressway for alleged financial fraud in subvention schemes, potential nexus between developers and banks, and violations of RBI and NHB guidelines.
What is the subvention scheme?
The subvention scheme is a financial arrangement where banks extend loans to developers on behalf of homebuyers, with the expectation that developers will pay pre-EMI interest until possession is handed over to the buyers.
Why has the Supreme Court ordered this investigation?
The Supreme Court ordered the investigation to uncover any financial fraud, ensure regulatory compliance, and protect the interests of homebuyers who may have been affected by the subvention scheme.
What role do the development authorities play in this investigation?
The development authorities, including Noida, Greater Noida, and Yamuna Expressway, are required to provide detailed documentation and actively cooperate with the CBI to facilitate the investigation.
What are the potential consequences of the investigation?
The investigation could lead to legal actions against developers and banks found guilty of financial fraud, regulatory violations, or other irregularities, and may result in penalties and reforms to protect homebuyers.
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