ED conducts raids in homebuyers ‘fraud’ case

The Enforcement Directorate searched multiple Delhi-NCR locations in a money laundering probe involving alleged builder-bank fraud under subvention schemes. AVJ Developers and Rudra Buildwell Construction allegedly cheated homebuyers through “No EMI till possession” promises, with flats remaining undelivered for years

New Delhi: The Enforcement Directorate has conducted searches 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, officials said on Friday.

The raids were undertaken on Thursday.

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The Prevention of Money Laundering Act (PMLA) investigation pertains to the alleged builders-bank nexus to “cheat” homebuyers through ‘subvention schemes’ by real estate companies named AVJ Developers (India) and Rudra Buildwell Construction, according to the officials.

The ED case stems from two separate CBI FIRs.

The CBI probe found that the builders cheated the homebuyers and investors by promising a ‘No EMI till possession’ scheme where homebuyers availed housing loans and booked flats/apartments in the projects of the said companies but possession of their houses was not given even after the lapse of several years, they said.