CBI files charges against Delhi-based real estate firm AVJ, bankers

THe exchange Bureau of investigating (CBI) has filed a bill piece of paper against a Delhi-based existent estate company and its subsidiaries, directors of the companies, officials of three public and private sector banks as well as proxy homebuyers as part of its ongoing probe into the builder-bank nexus, the agency said on Wednesday.CBI is investigating at least 50 cases across the country against various builders, bankers and other financial institutions. Registered on the directions of the Supreme Court, the agency is looking into the alleged “unholy” nexus between builders and financial institutions in sanctioning huge amounts under so-called subvention schemes without due diligence. In April 2025, the Supreme Court ordered a CBI probe after a group of over 170 petitions filed by more than 1,200 homebuyers alleged that banks had disbursed huge loans to builders under a scheme even before the projects were started. After builders/developers defaulted, the banks demanded equated monthly instalments (EMIs) to recover loan amounts from the homebuyers.Subvention schemes involve a tripartite agreement between the buyer, the bank, and the developer. Under these, buyers typically pay between 5% and 20% up-front, while the bank loans the rest to the developer in instalments.The developer pays the interest on a loan for a certain fixed period, usually two to four years, until the buyer takes possession. The buyer then starts paying back the loan in EMIs. Based on CBI’s FIRs, ED is also conducting a parallel money laundering investigation into the matter.In a statement on Wednesday, the agency said, “In a significant breakthrough in a case involving large-scale cheating of homebuyers and criminal misconduct by public servants, the Central Bureau of Investigation (CBI) has filed a charge sheet against AVJ Developers (India) Pvt. Ltd., M/s AVJ Developers Pvt. Ltd..., their directors, bank officers... And proxy homebuyers for their alleged involvement in a criminal conspiracy causing wrongful loss to financial institutions and innocent homebuyers.”AVJ is currently under corporate insolvency resolution process. An email query sent to CIRP resolution professional of AVJ remained unanswered.“Investigation conducted by CBI has revealed that the accused builder company and its directors, in conspiracy with public servants and other private persons, allegedly induced homebuyers/investors through false assurances and fraudulent representations and obtained financial benefits by resorting to illegal and deceptive means. It was further revealed during investigation that the accused public servants abused their official position to facilitate the illegal acts of the builder in violation of established norms and procedures, thereby extending undue pecuniary advantage to the builder company and causing corresponding wrongful loss to the concerned financial institutions and the homebuyers,” it added.