The Central Bureau of Investigation (CBI) has initiated a significant operation, filing six new cases and carrying out searches across 12 locations in Kolkata, Bengaluru, and Mumbai. This major crackdown targets builders accused of defrauding thousands of homebuyers. A key focus of the investigation is also the alleged unholy alliance between these builders and officials within various financial institutions.
These actions by the CBI were undertaken in direct response to a directive issued by the Supreme Court.
The implicated builders include Bengaluru-based entities Ithaca Estate Private Limited, LGCL Urban Homes (India) LLP, and Ozone Urbana Infra Developers Pvt. Ltd. From Mumbai, Shashwati Realty Pvt. Ltd. (involved in a Bengaluru project) and ACME Realities Pvt. Ltd. are under scrutiny, alongside Kolkata-based MKHS Housing LLP.
According to the agency, this large-scale investigation stems from numerous Special Leave Petitions (SLPs) filed by thousands of distressed homebuyers across India. These individuals reported being cheated by builders and developers, and subsequently faced aggressive actions from financial institutions, compelling them to seek intervention from the Supreme Court.
The Supreme Court, recognizing a dubious connection between builders and financial institutions that exploited homebuyers through innovative ‘Subvention Scheme’ home loans, directed the CBI in April 2025 to register seven preliminary inquiries into these matters.
The CBI then initiated these preliminary inquiries as per the Supreme Court’s mandate. After concluding six inquiries related to builders within the National Capital Region (NCR), the agency had previously submitted a status report to the Supreme Court.
Subsequently, acting on further directives from the Supreme Court, the CBI registered an additional 22 cases against several NCR builders, which are currently undergoing active investigation.
Most recently, upon the completion of the seventh preliminary inquiry, which focused on builders outside the NCR, the CBI presented its status report to the Supreme Court. Following a review of this report, the Court instructed the CBI to formally register six regular cases against various builders in Kolkata, Bengaluru, and Mumbai, along with unidentified officials of associated financial institutions. The agency confirmed that searches related to these new cases are currently in progress.