Bengaluru: CBI files chargesheet in home buyer fraud cases

The probe is part of a larger probe ordered by the Supreme Court into alleged misuse of homebuyer funds and cheating by property developers across the country. | Photo credit: File photo

The Central Bureau of Investigation (CBI) has filed the 14th and 15th charge-sheets in its ongoing probe into an alleged large-scale homebuyer scam, indicting two Bengaluru-based construction firms, their directors and officials of three financial institutions for allegedly conspiring to defraud homebuyers.

The charges filed in the Special CBI Court in Bengaluru relate to housing projects developed by Ithaca Estate Pvt. Ltd. and LGCL Urban Homes (India) LLP.

In one record sheet CBI named M/s Ithaca Estate Pvt. Ltd., its director and officers of HDFC Bank Ltd., ICICI Bank Ltd. and Indiabulls Housing Finance Ltd. In the second case, the agency charged LGCL Urban Homes (India) LLP and its director.

According to the CBI, its investigation found that construction companies and their directors, in an alleged conspiracy with bank officials and other private individuals, induced home buyers and investors to buy properties by giving false assurances and fraudulent declarations. The agency alleged that the accused were obtaining financial benefits through illegal and deceptive means.

The CBI said it collected substantial documentary and oral evidence during the investigation and filed a charge sheet under relevant provisions of the Indian Penal Code for criminal conspiracy, cheating, breach of trust and offenses under the Prevention of Corruption Act.

The probe is part of a larger probe ordered by the Supreme Court into alleged misuse of homebuyer funds and cheating by property developers across the country.

The agency is currently investigating 34 other cases involving various construction companies and unidentified bank and financial institution officials.

With the latest filings, the CBI has filed 15 chargesheets so far in homebuyer fraud cases. Earlier charges were filed against several builders, including Rudra Buildwell Constructions Pvt. Ltd., Dream Procon Pvt. Ltd., Jaypee Infratech Ltd., AVJ Developers (India) Pvt. Ltd., CHD Developers Pvt. Ltd., Sequel Buildcon Pvt. Ltd., Logix City Developers Pvt. Ltd., Manju J Homes India Ltd., Shubhkamna Buildtech Pvt. Ltd., Ninex Developers Ltd., Decent Buildwell Pvt. Ltd. and Rudra Buildwell Projects Pvt. Ltd., along with their directors and officers of financial institutions.

Published – 7 Jul 2026 19:55 IST