The Enforcement Directorate (ED) has conducted raids at multiple locations in Delhi-NCR as part of a money laundering probe into two cases of alleged cheating of homebuyers through the ‘subvention’ scheme. The searches were carried out on Thursday, officials said on Friday. The investigation, under the Prevention of Money Laundering Act (PMLA), pertains to an alleged builders-bank nexus to cheat homebuyers through ‘subvention schemes’ by real estate companies AVJ Developers (India) and Rudra Buildwell Construction.
According to officials, the ED case stems from two separate Central Bureau of Investigation (CBI) First Information Reports (FIRs). The CBI probe found that the builders cheated homebuyers and investors by promising a ‘No EMI till possession’ scheme. Under this scheme, homebuyers availed housing loans and booked flats or apartments in the projects of the said companies.
However, possession of their houses was not given even after several years had lapsed, officials said.
