India’s top investigators at the Central Bureau of Investigation (CBI) have launched a strong crackdown on real estate builders accused of scamming thousands of homebuyers. On Saturday, the CBI registered six fresh cases against developers in Kolkata, Bengaluru, and Mumbai, plus unnamed officials from financial institutions. This move came straight from orders by the Supreme Court.
Teams from the CBI raided 12 locations across these cities, grabbing key documents and digital evidence that point to wrongdoing. The agency says searches are still ongoing, building on complaints from frustrated homebuyers who turned to the Supreme Court for help.
At the heart of this real estate fraud probe are stories of developers who took buyers’ money but never delivered homes or apartments. Banks piled on the pain by aggressively chasing loan payments through coercive tactics. The Supreme Court spotlighted this “unholy nexus” between builders and lenders, especially in the controversial subvention scheme for home loans—where developers promise to cover interest until possession, but often bail out.
Back in April 2025, the court kicked off seven preliminary inquiries into such scams. The CBI already filed 22 FIRs against builders in the National Capital Region (NCR) and is digging deeper there. Now, wrapping up the seventh inquiry focused on projects outside NCR, the court reviewed the CBI’s report and told them to turn findings into six full-blown cases.
The targeted companies include Ithaca Estate Pvt. Ltd. in Bengaluru, LGCL Urban Homes (India) LLP in Bengaluru, Ozone Urbana Infra Developers Pvt. Ltd. in Bengaluru, Shashwati Realty Pvt. Ltd. in Mumbai (with Bengaluru projects), MKHS Housing LLP in Kolkata, and ACME Realities Pvt. Ltd. in Mumbai.
Homebuyers across India have flooded courts with grievances, saying developers left them high and dry on stalled projects while banks kept demanding monthly EMIs under the subvention model. This widening CBI investigation now zeros in on proving the level of collusion between real estate firms and financial players, aiming to bring justice to cheated families chasing their dream homes.
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