Daijiworld Media Network - New Delhi

New Delhi, Aug 14: The Enforcement Directorate (ED) on Friday conducted searches at multiple locations in Delhi and the National Capital Region (NCR) linked to two builders accused of allegedly duping homebuyers through a loan subvention scheme.

The searches were carried out against AVJ Developers and Rudra Buildwell Construction following allegations of an "unholy nexus" between banks and developers to deceive homebuyers.

Under the subvention scheme, banks disburse the sanctioned home loan amount directly to the builder. The builder is then required to pay the Equated Monthly Instalments (EMIs) on the loan until possession of the flat is handed over to the buyer.

However, when builders default on EMI payments, banks demand the outstanding EMIs from the homebuyers, leaving them to bear the financial burden.

The builders had offered schemes assuring prospective homebuyers that they would not have to pay home loan EMIs until they received possession of their flats.

Relying on these assurances, several individuals availed bank loans and booked flats or apartments in the builders' projects.

However, homebuyers later alleged that they had not received possession of their flats even after several years. The delay and subsequent repayment demands resulted in significant financial losses for many buyers.

The ED's money laundering investigation was initiated on the basis of cases registered by the Central Bureau of Investigation (CBI).

The agency said its Delhi zonal office registered an Enforcement Case Information Report (ECIR) based on two FIRs filed by the CBI in July 2025 following a Supreme Court order.

The ED is also investigating how the loan amounts sanctioned in the names of homebuyers were utilised, into which accounts the funds were transferred and whether the money was diverted to other companies or assets.

The searches are part of the agency's ongoing investigation into the alleged financial irregularities involving the builders and the homebuyer loan scheme.