The Central Bureau of Investigation has unearthed an alleged builder-bank nexus in a major homebuyers’ fraud case and filed a chargesheet against multiple builder companies, bank officials and proxy homebuyers for allegedly cheating financial institutions and innocent investors.
The agency has filed the chargesheet against M/s AVJ Developers (India) Pvt. Ltd., M/s AVJ Developers Pvt. Ltd., and M/s Kesar Builders Pvt. Ltd., along with their directors, officials of Bank of India, ICICI Bank and UCO Bank, as well as several proxy or fictitious homebuyers.
Table of Contents
Alleged Conspiracy to Defraud Homebuyers and Banks
The CBI stated that its investigation revealed a large-scale criminal conspiracy involving builders, public servants and private individuals who allegedly induced homebuyers and investors through false assurances and fraudulent representations.
As per the agency, the accused builder companies allegedly secured financial benefits through illegal and deceptive means, leading to wrongful losses for both financial institutions and genuine homebuyers.
The investigation further alleged that certain bank officials abused their official positions to facilitate illegal acts of the builders in violation of established banking norms and procedures. The officials allegedly enabled undue pecuniary advantages to the builder companies, causing corresponding financial losses to banks and investors.
Use of Proxy Homebuyers and Diversion of Funds
The CBI also found that some accused private individuals acted as proxy or fictitious homebuyers. These persons allegedly misrepresented facts before financial institutions in connivance with the builders to obtain home loans fraudulently.
According to the agency, such acts helped the builder companies obtain undue financial gains while exposing banks to significant losses. The proxy homebuyers have also been chargesheeted in the case.
The investigation additionally revealed that M/s Kesar Builders Pvt. Ltd., described as a sister concern of the main builder group, was allegedly used for routing and diversion of funds.
Charges Invoked
The chargesheet has been filed before the competent court under various provisions of the Indian Penal Code and the Prevention of Corruption Act. The offences invoked reportedly include:
- Criminal conspiracy
- Cheating
- Criminal breach of trust
- Forgery for the purpose of cheating
- Using forged documents as genuine
- Criminal misconduct by public servants under the Prevention of Corruption Act
The CBI said that the probe uncovered substantial documentary and oral evidence indicating misuse of official positions, diversion and misutilisation of funds, and fraudulent conduct affecting homebuyers.
Wider Crackdown on Builder Fraud Cases
The agency noted that it is currently investigating 50 cases registered pursuant to directions issued by the Supreme Court of India against various builders and unknown officials of financial institutions across the country.
The CBI further stated that chargesheets have already been filed in three other related cases against:
- M/s Rudra Buildwell Constructions Pvt. Ltd. and its directors
- M/s Dream Procon Pvt. Ltd. and its directors
- Jaypee Infratech Ltd. and its directors
These cases also involve allegations of criminal conspiracy and cheating linked to homebuyer frauds.
Investigation Continues
Reiterating its commitment to tackling economic offences and corruption, the CBI said it remains focused on ensuring accountability in cases adversely affecting common citizens and homebuyers.
Further investigation in the present case is continuing.
Read More: Customs Seizes Marijuana Worth Rs. 97 Lakh From Bangkok Passenger at Delhi IGI Airport
