The Enforcement Directorate (ED) conducted search operations at multiple locations in Delhi-NCR on Thursday, August 13, 2026, as part of its ongoing investigation into alleged financial irregularities involving real estate developers and housing-loan arrangements marketed as 'No EMI Till Possession' schemes. According to PTI, the latest raids are part of the ED's ongoing investigation into two builder-bank nexus cases involving alleged cheating of homebuyers through subvention schemes. The investigation is being conducted under the Prevention of Money Laundering Act (PMLA) and targets companies including AVJ Developers (India) Pvt. Ltd. and Rudra Buildwell Construction Pvt. Ltd. The ED is probing allegations of an 'unholy nexus' between banks and developers to dupe homebuyers through these subvention schemes, with the latest searches highlighting concerns surrounding these schemes, particularly where construction and delivery are delayed.
The probe focuses on subvention schemes under which homebuyers were encouraged to take housing loans on the promise that developers would pay their equated monthly instalments (EMIs) until possession of the flats. As reported by PTI, under the alleged arrangement, banks disbursed sanctioned loan amounts directly to the builders, while the developers were responsible for servicing the loans until the properties were handed over. However, when builders start defaulting on the EMIs, the banks demand the EMIs from the homebuyers. According to the CBI investigation, the builders allegedly cheated homebuyers and investors by offering 'Subvention Schemes', including 'No EMI Till Possession' schemes. According to the allegations under investigation, several buyers did not receive possession of their homes even after years of waiting, eventually resulting in significant financial losses for them. At the same time, developers allegedly defaulted on EMI payments, leaving banks to seek repayment from the homebuyers, who were then burdened with outstanding loan liabilities and financial losses. The builders offered schemes assuring homebuyers that they would not have to pay home loan EMIs until they received possession of their flats, with many individuals taking bank loans and booking flats in these projects based on these promises.
The ED is examining the flow and utilisation of housing-loan funds obtained in the names of homebuyers, investigating whether the money was transferred to other companies, projects or assets and whether funds were diverted from their intended purpose. According to PTI, the money-laundering investigation follows two CBI FIRs registered on July 28, 2025, in compliance with the Supreme Court's order dated April 29, 2025, passed in SLP (C) No. 7649/2023, Himanshu Singh vs Union of India & Ors. 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. Investigators are specifically looking into whether the money was transferred to other companies, projects or assets and whether funds were diverted from their intended purpose.
The investigation also focuses on allegations of a possible nexus between banks and developers that may have facilitated the subvention arrangements and exposed homebuyers to financial risks. As reported by PTI, the delay in handing over possession allegedly resulted in wrongful financial loss to the homebuyers, according to the CBI investigation. The ED's investigation is continuing, and the allegations against the companies and individuals involved remain subject to further investigation and legal proceedings. The ED's Delhi zonal office registered the ECIRs based on these cases, with the central agency maintaining that the investigation is ongoing and that the probe focuses on allegations of a possible nexus between banks and developers that may have facilitated the subvention arrangements.
