CBI unearths builder bank nexus in homebuyers fraud case

NEW DELHI, May 20, 2026: The Central Bureau of Investigation filed its ninth chargesheet against a real estate company, its directors, and public servants in connection with a large-scale homebuyers fraud and criminal misconduct case.

The chargesheet names Manju J Homes India Ltd., its directors, and bank officers from the State Bank of India for their alleged involvement in a criminal conspiracy that caused wrongful losses to financial institutions and innocent homebuyers regarding a housing project located in Ghaziabad, Uttar Pradesh.

The investigation revealed that the accused builder company and its directors conspired with bank officials and other private individuals to induce homebuyers and investors through false assurances and fraudulent representations, ultimately obtaining financial benefits through illegal and deceptive means.

The accused bank officials allegedly abused their official positions to facilitate the illegal acts of the builder in violation of established norms and procedures, extending undue pecuniary advantages to the company while causing corresponding wrongful losses to the financial institutions and buyers.

The chargesheet has been filed before the competent court for offenses including criminal conspiracy, cheating, criminal breach of trust, forgery for the purpose of cheating, and using genuine forged documents under the Indian Penal Code, alongside criminal misconduct under the Prevention of Corruption Act.

The investigation unearthed substantial documentary and oral evidence indicating a larger conspiracy involving the misuse of official positions, diversion and misutilization of funds, and fraudulent conduct toward homebuyers.

The Central Bureau of Investigation is currently investigating 50 cases in compliance with the directions of the Supreme Court against various builders across the country and unknown officials of different financial institutions concerning alleged cheating and diversion of funds involving homebuyers.

Prior to this, the agency had filed eight chargesheets in similar cases against companies including Rudra Buildwell Constructions, Dream Procon, Jaypee Infratech, AVJ Developers (India), CHD Developers, Shubhkamna Buildtech, Sequel Buildcon, and Logix City Developers, along with their respective directors and associated bank officers.

The central agency reiterated its commitment to ensuring accountability in cases involving economic offenses, corruption, and public fraud, particularly matters adversely impacting the interests of common citizens and homebuyers.