For countless Indian families, buying a home symbolizes stability and lifelong achievement.
But across Kolkata, Bengaluru, and Mumbai, this dream has turned into prolonged anxiety.
Stalled projects, unfinished apartments, and relentless EMI payments have trapped thousands of households in financial distress.
On Saturday, the Central Bureau of Investigation (CBI) took decisive action in one of India’s biggest real estate scandals.
The agency filed six criminal cases against builders and carried out searches at 12 locations.
The probe is not limited to developers but also extends to officials of financial institutions accused of colluding
with builders through the controversial subvention scheme — a loan model the Supreme Court has denounced as a trap for homebuyers.
A Judicial Rebuke
In April 2025, the Supreme Court labeled the subvention scheme as
“a new method of fraud”, criticizing the nexus between lenders and builders that left buyers most vulnerable.
The court had ordered the CBI to conduct seven preliminary inquiries into such practices.
Saturday’s crackdown follows the completion of the final inquiry, marking an escalation in judicial and investigative scrutiny.
Builders Under the Scanner
The CBI has named the following companies in its cases:
- Bengaluru: Ithaca Estate Pvt. Ltd., LGCL Urban Homes (India) LLP, Ozone Urbana Infra Developers
- Mumbai: Shashwati Realty Pvt. Ltd. (project in Bengaluru), Acme Realities Pvt. Ltd.
- Kolkata: MKHS Housing LLP
Investigators say the scope may widen to include bank officials who approved loans without proper verification of project progress.
Heartbreak for Homebuyers
Ramesh, a software engineer from Delhi, booked a flat in Bengaluru in 2017 for Rs.68 lakh.
“The builder promised delivery by 2021. Today, not a single brick has been laid. Yet the bank deducts my EMI every month
for a home that doesn’t exist,” he said.
In Kolkata and Mumbai, retired couples have invested their life savings only to be left with half-constructed towers,
rising debt, and fading hope of ever moving in.
A Systemic Failure
Former IPS officer and cybercrime expert Triveni Singh argued the case highlights systemic collusion.
“Banks extended loans without verifying project progress, effectively mortgaging the future of homebuyers,” he said.
The scandal mirrors past crises such as the Amrapali Group collapse, which stranded more than 40,000 buyers in NCR,
alongside Unitech and Jaypee Infratech controversies. Together, these cases underscore chronic vulnerabilities
in India’s housing sector.
The Road Ahead
For many homebuyers, the CBI’s intervention offers hope. Yet real estate disputes often drag on for years,
and bankruptcies leave families stranded with incomplete projects and heavy liabilities.
With the Supreme Court overseeing progress and the CBI intensifying its investigation,
there is cautious optimism that accountability may finally be enforced — though justice for long-suffering buyers remains uncertain.
Additional Insights
- Regulatory loopholes: Weak enforcement of RERA (Real Estate Regulation and Development Act) has allowed fraudulent builders to exploit gaps.
- Impact on banking sector: Non-performing assets (NPAs) could rise as loans tied to stalled projects turn sour.
- Policy reforms needed: Experts urge stricter due diligence requirements for banks and tighter oversight of housing projects.
- Digital transparency: Creating a central registry of real estate projects and linking it with banks could help prevent future scams.
- Consumer protection: Homebuyers’ groups are demanding fast-track courts for real estate disputes to ensure quicker relief.
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