New Delhi Sep 27 (UNI) The Central Bureau of Investigation (CBI) has launched a major crackdown, registering six cases against builders in Kolkata, Bangalore and Mumbai for allegedly cheating and defrauding thousands of homebuyers. The action aims to investigate the suspected nexus between these builders and officials of financial institutions.
The federal probe agency has conducted search operations at twelve locations across these cities.
The implicated builders include Bangalore-based Ithaca Estate Private Limited, LGCL Urban Homes (India) LLP, Ozone Urbana Infra Developers Pvt. Ltd., and Mumbai-based Shashwati Realty Pvt. Ltd. (which has a project in Bangalore). Also named are Kolkata-based MKHS Housing LLP and Mumbai-based ACME Realities Pvt. Ltd. The CBI has accused them of committing various financial frauds.
This action follows a directive from the Supreme Court. The court had taken note of numerous Special Leave Petitions (SLPs) filed by homebuyers across India who were cheated by developers and faced coercive actions from financial institutions.
In April 2025, observing an “unholy nexus” between builders and financial institutions, the Supreme Court directed the CBI to register seven Preliminary Enquiries (PEs). The scheme allegedly used to cheat homebuyers was the ‘Subvention Scheme’ for home loans.
Following the directive, the CBI registered seven PEs. After completing six enquiries related to builders in the National Capital Region (NCR), the agency submitted a status report to the Supreme Court, leading to the registration of 22 cases, which are under active investigation.
Now, upon completing the seventh PE concerning builders outside the NCR, the CBI submitted another status report. After reviewing it, the Supreme Court directed the agency to register six Regular Cases (RCs) against the builders in Kolkata, Bangalore, and Mumbai, as well as against unknown officials of financial institutions.
In compliance, the CBI has registered the six cases and conducted searches at twelve locations in Kolkata, Bangalore, and Mumbai. These searches are still in progress. Various incriminating documents and digital evidence have been seized during the operation.
Further investigation is ongoing.
