CBI Registers 6 FIRs Against Real Estate Developers in Nationwide Subvention Scam Probe
The Central Bureau of Investigation (CBI) has registered six FIRs against real estate developers in Mumbai, Bangalore, and Kolkata, following a Supreme Court directive. The probe focuses on alleged fraud and collusion in subvention schemes, which have defrauded homebuyers.
CbiReal EstateSubvention SchemeFraudSupreme CourtReal EstateSep 27, 2025
The Mumbai-based companies named in the FIRs are Shashwati Realty Pvt Ltd, which has a project in Bangalore, and ACME Realties Pvt Ltd. Additionally, the CBI has taken action against Ithaca Estate Private Limited, LGCL Urban Homes (India) LLP, and Ozone Urbana Infra Developers Pvt. Ltd., all registered in Bangalore, as well as MKHS Housing LLP in Kolkata.
The Supreme Court’s directive, issued on Tuesday, authorised the CBI to register six additional cases into alleged fraud involving banks and real estate developers across Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj. CBI teams conducted searches at 12 locations across Mumbai, Bangalore, and Kolkata, seizing documents and digital evidence pertinent to the investigations. These actions supplement the 22 ongoing cases already registered by the agency into similar allegations within the Delhi-NCR region, focusing on projects in Noida, Greater Noida, Gurugram, and adjoining areas under the jurisdiction of development authorities in Uttar Pradesh and Haryana.
The Supreme Court's intervention comes after a series of petitions filed by over 1,200 homebuyers who were allegedly defrauded under subvention schemes. These schemes, often marketed as “no EMI until possession,” involved banks disbursing loans directly to builders, who were responsible for paying the EMIs until the property was handed over. However, many builders reportedly defaulted on these payments, leading to stalled projects and severe financial distress for homebuyers.
In April 2025, the Supreme Court directed the CBI to investigate these allegations, citing an “unholy nexus” between builders and financial institutions that exploited subvention schemes to the detriment of consumers. The Court authorised the CBI to register seven preliminary enquiries, which, upon completion, led to the registration of six regular cases against various builders outside the NCR.
This nationwide crackdown underscores the judiciary's commitment to protecting consumer interests in the real estate sector. The CBI's expanded probe aims to hold accountable those responsible for defrauding homebuyers and to deter similar fraudulent practices in the future. The current proceedings are among the most extensive legal actions ever in India’s real estate sector. For numerous homebuyers, the outcome could clarify whether banks, developers, or regulatory authorities are accountable for the collapse of subvention schemes, potentially reshaping oversight and accountability standards across the industry.
Frequently Asked Questions
What is a subvention scheme in real estate?
A subvention scheme in real estate is a financing arrangement where banks disburse loans directly to builders, who are responsible for paying the EMIs until the property is handed over to the homebuyer. These schemes are often marketed as ‘no EMI until possession’ to attract buyers.
Why did the Supreme Court direct the CBI to investigate real estate fraud?
The Supreme Court directed the CBI to investigate real estate fraud following a series of petitions filed by over 1,200 homebuyers who were allegedly defrauded under subvention schemes. The Court cited an ‘unholy nexus’ between builders and financial institutions that exploited these schemes to the detriment of consumers.
Which cities are involved in the CBI's investigation?
The CBI's investigation involves real estate developers in Mumbai, Bangalore, and Kolkata. The Supreme Court authorized the CBI to register cases in these cities as well as in Mohali and Prayagraj.
What actions did the CBI take as part of the investigation?
As part of the investigation, the CBI conducted searches at 12 locations across Mumbai, Bangalore, and Kolkata, seizing documents and digital evidence pertinent to the cases. The agency also registered six FIRs against various real estate developers.
What is the potential impact of this investigation on the real estate sector?
The potential impact of this investigation is significant. It could clarify the accountability of banks, developers, and regulatory authorities in the collapse of subvention schemes. This could lead to stricter oversight and accountability standards in the real estate sector, protecting homebuyers from future fraud.
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