The Enforcement Directorate (ED) is probing allegations of an "unholy nexus" between the banks and developers to dupe homebuyers.

New Delhif:

The Enforcement Directorate (ED) on Friday raided multiple locations in Delhi and the National Capital Region (NCR) at places linked to two builders accused of luring homebuyers with a subvention scheme. 

Under the scheme, banks disburse the sanctioned amount directly to the accounts of builders, who are then required to pay the Equated Monthly Instalments (EMIs) on the sanctioned loan amount until flats are handed over to the homebuyers. However, when builders start defaulting on the EMIs, the banks demand the EMIs from the homebuyers.

Following allegations of an "unholy nexus" between the banks and developers to dupe homebuyers, the ED, India's financial-crime agency, conducted raids against the two builders - AVJ Developers and Rudra Buildwell Construction.

'No EMI Till Possession' Assurance

The builders offered schemes assuring homebuyers that they would not have to pay home loan EMIs until they received possession of their flats. Relying on these schemes, many individuals took bank loans and booked flats or apartments in their projects.

However, the homebuyers alleged that they have not received possession of their flats despite several years, eventually resulting in significant financial losses for them.

ED Steps In Following CBI FIR

The ED's money laundering investigation into this matter was initiated based on cases registered by the Central Bureau of Investigation (CBI).

The ED said that its Delhi zonal office registered an ECIR (Enforcement Case Information Report) in these cases, based on two FIRs filed by the CBI in July 2025, following a Supreme Court order.

The central agency is also probing how the loan amounts obtained in the homebuyers' names were utilised, which accounts received the funds, and whether the money was diverted to other companies or assets.