The Enforcement Directorate (ED) on Tuesday conducted searches at five premises across Delhi-NCR in connection with its ongoing investigation into three cases involving the alleged cheating of homebuyers through 'subvention schemes'. The searches targeted premises of Chandigarh Developers Ltd, Ninex Developers Ltd, and Manju J Homes (India) Ltd.
Background of the Investigation
The investigations under the Prevention of Money Laundering Act (PMLA) stem from three Enforcement Case Information Reports (ECIRs) registered by the ED on the basis of three FIRs filed by the Central Bureau of Investigation (CBI) on July 28, 2025, in compliance with a Supreme Court order dated April 29, 2025. The Supreme Court had directed the CBI to investigate the alleged fraud involving subvention schemes in the real estate sector.
The CBI investigation revealed that the builders allegedly cheated homebuyers through 'subvention schemes'. These schemes typically involve builders paying the pre-EMI (equated monthly installment) interest on home loans for a specified period, after which the homebuyer starts paying the full EMI. However, in this case, the builders allegedly misused the funds.
Details of the Alleged Fraud
The investigation further revealed that the builders had floated 'No EMI till possession' schemes, under which homebuyers availed housing loans and booked flats and apartments in projects. Under these schemes, homebuyers were promised that they would not have to pay any EMI until possession of the property was handed over. However, even after the lapse of several years, possession of the flats was not handed over, causing wrongful loss to the homebuyers.
The ED's searches were aimed at gathering evidence related to the diversion of funds. The investigation revealed that the proceeds of crime were allegedly generated through the diversion of home loans and payments made by homebuyers to other projects. This diversion allegedly caused significant financial losses to the homebuyers, who were left with incomplete or undelivered properties.
Impact on Homebuyers
The alleged fraud has affected hundreds of homebuyers who invested in projects by these builders. Many homebuyers had taken housing loans based on the promise of 'No EMI till possession', but were later forced to pay EMIs without receiving possession of their flats. The ED's action is part of a broader effort to crack down on fraudulent practices in the real estate sector and recover funds for the victims.
The ED is expected to file a prosecution complaint under the PMLA based on the evidence gathered during the searches. The agency will also investigate the role of bank officials and other entities involved in the sanction and disbursal of loans under the subvention schemes.
