Loan Fraud: CBI Initiates Probe Against 24 Real Estate Projects In Noida, Greater Noida, Yamuna Expressway

The Central Bureau of Investigation (CBI) has initiated a probe into 24 real estate projects across Noida, Greater Noida, and the Yamuna Expressway, following a Supreme Court directive issued on April 29. The investigation centres on alleged financial irregularities in subvention schemes that may have adversely affected thousands of homebuyers.

During these subvention schemes, banks lent substantial amounts directly to developers, who then paid interest until buyers took possession. Several developers had defaulted on these loan payments, leaving homebuyers with unprecedented EMIs against the properties they had not even yet received, according to ET Realty.

The Supreme Court has directed the CBI to register seven preliminary inquiries, with one specifically targeting Supertech Limited. The remaining inquiries will examine projects in Noida, Greater Noida, the Yamuna Expressway region, Gurugram, Ghaziabad, and major metropolitan areas, including Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj, the report added.

Following the court’s direction, the CBI sought contract details from the Noida Authority on nine projects, including Supertech’s Cape Town in Sector 74, Logix’s Blossom Zest in Sector 143, and Jaypee Greens Orchard in Sector 131 of Noida. The Greater Noida Authority has also been asked to furnish information on 11 projects, such as Supertech’s Ecovillage 2 and 3, as well as projects of AVJ Heights and Earthcon Universal. The Yamuna Expressway Industrial Development Authority (YEIDA) has handed over papers related to four different projects. Other projects that are under the investigation radar were Supertech’s UP Country in Sector 17A and Jaypee Group’s Kove and Kassia in Sector 25, as mentioned in the report.

The investigation is aimed at determining whether banks released funds without adequately verifying construction progress, potentially violating guidelines set by the Reserve Bank of India (RBI) and the National Housing Bank (NHB). Additionally, the probe will assess if funds were diverted away from construction purposes.

The apex court has appointed nodal officers from the RBI, RERA (UP and Haryana), and the Ministry of Housing and Urban Affairs. During the investigation, the CBI will provide regular updates to the court, according to the report.

Earlier, the Allahabad High Court ordered the CBI and the Enforcement Directorate (ED) to investigate potential financial and legal violations within the Sports City projects in Noida’s Sectors 78, 79, and 150. This development follows a separate order.