Enforcement Directorate raids Delhi-NCR builders over subvention scheme fraud

The Enforcement Directorate (ED) conducted raids in the Delhi-NCR region regarding two cases involving a builder-bank nexus. The investigations focus on fraudulent ‘subvention schemes’ used to deceive homebuyers and investors.

The cases involve AVJ Developers (India) Private Limited and Rudra Buildwell Construction Private Limited. According to the ED, the builders promoted schemes promising ‘no EMI until possession.’ Under these arrangements, homebuyers secured housing loans and booked apartments, but failed to receive possession even after several years, resulting in significant financial losses.

The ED investigations were initiated under the Prevention of Money Laundering Act (PMLA) based on Enforcement Case Information Reports (ECIRs). These were derived from two FIRs filed by the Central Bureau of Investigation (CBI) following a Supreme Court order in the case of Himanshu Singh vs. Union of India and others.