CBI Registers Six FIRs Against Real Estate Developers in Subvention Scheme Fraud

The Central Bureau of Investigation (CBI) has registered six FIRs, including two against Mumbai-based developers, as part of a nationwide investigation into alleged fraud and collusion between real estate companies and financial institutions. The probe focuses on the alleged misuse of subvention schemes to defraud homebuyers, the central agency said on Saturday.

The Mumbai-based companies named in the FIRs are Shashwati Realty Pvt Ltd, which has a project in Bangalore, and ACME Realties Pvt Ltd. Alongside these, the CBI has also 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 move follows directions from the Hon’ble Supreme Court, which 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, which focused on projects in Noida, Greater Noida, Gurugram, and adjoining areas under the jurisdiction of development authorities in Uttar Pradesh and Haryana, which remain under active investigation.

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.