Supertech, Vatika, Jayprakash and Unknown Bank Officials Booked
• 22 Developers Booked in Homebuyer Scam
• Supreme Court Orders Spark Major Probe
• Subvention Scheme Turns into Fraud Trap
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
Sprouts News Exclusive
Contact: +91 9322755098
In a major crackdown on housing fraud, the CBI has registered 22 FIRs against NCR-based builders, including Supertech and Vatika, and unknown bank officials for duping homebuyers under subvention schemes. Acting on Supreme Court directives, raids across 47 locations revealed collusion between developers and financial institutions. Thousands were left paying EMIs for undelivered flats, prompting calls for deeper accountability.
CBI Registers 22 FIRs Against Top Builders and Bank Officials in NCR Housing Fraud
In a major crackdown on fraudulent housing practices in the National Capital Region (NCR), the Central Bureau of Investigation (CBI) has registered 22 criminal cases against prominent real estate developers and unknown bank officials. The CBI action follows Supreme Court directives aimed at investigating a suspected large-scale nexus between builders and financial institutions, which left thousands of homebuyers in distress.
The Sprouts News Investigation Team (SIT) has been closely tracking the developments in this case, which involves subvention housing schemes that eventually collapsed, placing the financial burden on buyers while developers walked away from incomplete or stalled projects.
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Contents
Supertech, Vatika, Jayprakash and Unknown Bank Officials Booked• 22 Developers Booked in Homebuyer Scam• Supreme Court Orders Spark Major Probe• Subvention Scheme Turns into Fraud TrapCBI Registers 22 FIRs Against Top Builders and Bank Officials in NCR Housing FraudClick Here To Download the News AttachmentSubvention Scheme Scam: Buyers Trapped, Builders DefaultedHigh-Profile Builders Named: Supertech, Jaypee, Vatika, and MoreCBI Raids Across 47 Locations, Seizes Digital and Physical EvidenceSupreme Court: No EMI Recovery from Buyers Until Further OrdersSIT Sources: Nexus Widespread Across Banking and Real Estate CirclesSprouts SIT Demands Centralised Oversight on Subvention Lending PracticesAlso Read: Mumbai Mega Water Scam: Brokers Exposed.A Step Toward Accountability in India’s Real Estate Crisis
Subvention Scheme Scam: Buyers Trapped, Builders Defaulted
Under the subvention model, builders promised to pay EMIs on behalf of homebuyers until the possession of flats. However, between 2018 and 2019, several developers stopped making payments. Banks, instead of pursuing builders, began recovering EMIs from buyers—many of whom had never received possession of their homes. This blatant breach of trust triggered widespread litigation.
Following a series of petitions, the Supreme Court in April 2025 ordered the CBI to conduct seven preliminary enquiries (PEs) into builder-bank collusion. Within three months, the CBI completed six of the PEs and submitted its findings. Based on this, the Court directed the agency to register 22 regular FIRs, sending shockwaves through the real estate and banking sector.
High-Profile Builders Named: Supertech, Jaypee, Vatika, and More
The CBI’s FIRs name several big-ticket real estate players across Noida, Greater Noida, Gurugram, Delhi, and Ghaziabad. These include:
•Supertech Ltd, Jaypee Infratech Ltd, VATIKA Ltd, Ajnara India Ltd, AVJ Developers, Earthcon Universal Infratech, Logix City Developers, CHD Developers, Sequel Buildcon, Shubhkamna Buildtech, and others.
Also included are Jaypee Sports International Ltd, Dream Procon, Idea Builders, and Manju J Homes India Ltd, linked to high-profile stalled projects like Victory Ace, Blossom Zest, and Red Apple Residency.
In addition to the developers, the FIRs mention unidentified bank officials, suggesting complicity in sanctioning loans without proper project verification, contrary to RBI’s 2013 circular on housing finance norms.
CBI Raids Across 47 Locations, Seizes Digital and Physical Evidence
As part of its investigation, the CBI raided 47 locations across Delhi, Gurugram, Noida, and Ghaziabad, seizing incriminating documents, digital records, and communications that reveal deliberate manipulation of loan disbursals and false assurances to buyers.
The Sprouts SIT, through its internal sources, has learned that several banks disbursed 70–80% of loan amounts at early stages of construction without verifying actual site progress. These loans were often linked to builder-banker subvention pacts, which are now under forensic scrutiny.
Supreme Court: No EMI Recovery from Buyers Until Further Orders
In an earlier hearing, the Supreme Court observed “blatant disregard” for regulatory norms and legal directives by both developers and lenders. The Court took cognizance of the fact that homebuyers were being pursued for repayments, despite not receiving possession or seeing project completion. It ordered that no recovery certificates be executed against buyers until further notice, providing temporary relief.
The apex court also pulled up several builders who are undergoing insolvency proceedings under IBC, further complicating recovery for the victims. In an effort to fix accountability, the court directed 40 developers and 30 lending institutions to submit compliance affidavits detailing payment timelines and construction status. However, only a handful complied.
SIT Sources: Nexus Widespread Across Banking and Real Estate Circles
The Sprouts News Investigation Team (SIT) has consistently received inputs pointing to a systemic fraud pattern—where banks, NBFCs, and developers operated with mutual benefit, leaving end-users trapped. According to a senior SIT analyst, “The subvention scam is not isolated—it reflects a nationwide breakdown in real estate lending ethics, and the CBI’s action may only be the tip of the iceberg.”
Legal experts suggest that banks may be held liable under Section 420 (cheating) and Section 120B (criminal conspiracy) of the Indian Penal Code if proven that disbursals were made in collusion with builders.
Sprouts SIT Demands Centralised Oversight on Subvention Lending Practices
The Sprouts SIT now calls for a comprehensive regulatory framework to govern builder-banker tie-ups. Subvention plans, though marketed as buyer-friendly, have become tools for siphoning funds under the guise of development. There is an urgent need for RBI, NHB, and SEBI to issue clear, enforceable norms and establish a real-time audit mechanism on large-scale home finance disbursals.
Additionally, a homebuyer protection tribunal, as suggested in various policy papers, must be institutionalised to fast-track cases of real estate fraud across India.
Also Read: Mumbai Mega Water Scam: Brokers Exposed.
A Step Toward Accountability in India’s Real Estate Crisis
The CBI’s registration of 22 criminal cases and the Supreme Court’s proactive stance mark a watershed moment in India’s housing regulation. For the thousands of NCR residents affected, this is a long-awaited step toward justice. However, systemic reforms, banking oversight, and strict judicial timelines are essential to prevent another subvention scam of this magnitude.
The Sprouts News Investigation Team (SIT) will continue to track this investigation as it unfolds and hold all stakeholders accountable—developers, banks, and regulators alike.
