NOIDA, India – The Central Bureau of Investigation (CBI) has initiated a wide-ranging probe into 24 real estate projects across Noida, Greater Noida, and the Yamuna Expressway, following a directive from the Supreme Court on April 29. The investigation aims to uncover alleged financial irregularities within a subvention scheme that may have defrauded thousands of unsuspecting homebuyers.
The central investigating agency has wasted no time, immediately seeking detailed records from the three development authorities: Noida Authority, Greater Noida Authority, and Yamuna Expressway Authority. The scope of the probe extends beyond mere document collection, delving into a suspected nexus between banks and developers that could have facilitated the alleged fraud.
Key Projects Under Scrutiny
Officials have confirmed that the CBI has specifically requested information on nine projects from the Noida Authority. These include developments by prominent names such as Supertech, Logix City Developers, IVR Prime Developers, and Jaypee Infratech.
A similar request has been dispatched to the Greater Noida Authority, focusing on 11 projects. Notably, several of these projects overlap with those identified in Noida, including developments by Supertech and Shubhkamna. The Yamuna Expressway Authority has been asked to provide documents for four projects under its purview.
The Alleged Subvention Scheme Scam
At the heart of the investigation are allegations that banks, operating under the subvention scheme, disbursed home loans directly to developers. Under the terms of this scheme, developers were purportedly responsible for paying the interest as pre-EMIs on behalf of homebuyers until possession of the property was handed over.
However, a disturbing pattern has emerged: some developers allegedly defaulted on these crucial payments. This left thousands of homebuyers in a precarious position, with banks hounding them to pay EMIs for properties that remained undelivered. The CBI’s inquiry will also scrutinize whether these loan disbursals violated guidelines set by the Reserve Bank of India (RBI) and the National Housing Bank (NHB), and if funds were illicitly diverted away from the intended construction.
Supreme Court Mandates Cooperation
During the hearing of the case, the Supreme Court unequivocally directed the development authorities to cooperate fully with the CBI investigation, further mandating the appointment of nodal officers to facilitate the process. The CBI has requested comprehensive documentation, including layout plans, sanction letters, dues statements, registry details, and developer information for all identified projects.
Specific projects under the scanner in Noida include Supertech’s Cape Town (Sector 74), Logix’s Blossom Zest (Sector 143), Mahagun Mezzaria (Sector 78), Ajnara Ambrosia (Sector 118), Jaypee Greens Orchard (Sector 131), Shubhkamna Tech Homes (Sector 137), and three projects in Sector 150 by Implex Infrastructure, Sequel Buildcon, and Logix Heights.
Greater Noida’s list features Supertech’s Ecovillage 2 and 3, and Czar, alongside projects by AVJ Heights, Earthcon Universal, Rudra, Geotech, Morpheus Developers, Future World, and Bulland Group. In the Yamuna Expressway region, the probe encompasses Supertech’s UP Country (Sector 17A), Oasis Realtech’s Grandstand (Sector 22D), and Jaypee Group’s Kove and Kassia (Sector 25).
Delayed Possession and Unregistered Units
A significant concern highlighted in the investigation is that some of these projects suffered from delayed possession or involved unregistered units, even as certain units were reportedly ready for handover.
The apex court has further instructed the CBI to file seven preliminary inquiries. One inquiry will be exclusively dedicated to Supertech projects, while the others will span multiple locations, including Noida, Greater Noida, Yamuna Expressway, Gurgaon, Ghaziabad, and major metropolitan areas like Mumbai, Bengaluru, Kolkata, Mohali, and Allahabad. The Supreme Court has also directed the governments of Uttar Pradesh and Haryana to appoint police officers to assist the investigation and has designated deputy secretary-rank nodal officers from the RBI, RERA (UP and Haryana), and the Housing and Urban Affairs Ministry to ensure seamless coordination.
Investigators are meticulously examining how banks released substantial sums to developers without adequately verifying construction progress, often relying solely on subvention agreements that ultimately exposed homebuyers to significant risk. They are also reviewing joint development agreements, which have reportedly created complex financial liabilities in several stalled projects.
In a related development, the Allahabad High Court has separately directed the CBI and the Enforcement Directorate (ED) to conduct investigations into the Sports City projects in Noida Sectors 78, 79, and 150 for potential financial and legal violations.
Noida Authority officials have confirmed that the details of these projects have already been provided to the CBI, signaling a full-fledged effort to bring transparency and accountability to the real estate sector.
