Real Estate Fraud – ED Searches Delhi-NCR Developers Over Homebuyer Loan Allegations
Real Estate Fraud – The Enforcement Directorate conducted searches across Delhi-NCR on Wednesday as part of a money laundering investigation into alleged irregularities involving homebuyers and subvention-linked housing loans.
Searches linked to three real estate firms
According to officials, the agency searched at least five locations associated with CHD Developers Ltd., Ninex Developers Ltd. and Manju J Homes (India) Ltd. The action was taken under provisions of the Prevention of Money Laundering Act.
The companies did not immediately respond to requests for comment.
Case follows CBI complaints filed in 2025
The ED inquiry is based on three FIRs registered by the Central Bureau of Investigation in 2025. Those cases were filed following directions issued by the Supreme Court, officials said.
Investigators are examining allegations that prospective buyers and investors were induced to purchase flats through subvention arrangements offered by developers. Such plans commonly assured buyers that they would not have to pay monthly loan instalments until their homes were ready for possession.
Buyers allegedly left with unpaid loans
Under the arrangement under scrutiny, buyers obtained bank loans to purchase apartments in the developers’ projects. However, investigating agencies have alleged that possession was not handed over even after several years in some cases.
The delay reportedly left buyers facing loan-related obligations despite not receiving the homes for which the financing had been arranged.
ED examines alleged diversion of funds
The Enforcement Directorate has alleged that money collected from homebuyers was diverted to other projects or used for purposes unrelated to the developments where the flats had been booked.
The agency is examining whether these alleged transactions resulted in proceeds of crime under the anti-money laundering law. Further details from the searches and the financial records being reviewed were not immediately available.
The investigation remains ongoing, and no conclusion on criminal liability has been announced. Any response from the companies or other parties named in the case may be considered as the inquiry progresses.