The Enforcement Directorate (ED) has conducted searches at multiple locations across Delhi-NCR as part of a money-laundering investigation into alleged financial irregularities involving real estate developers and housing-loan arrangements marketed as “No EMI Till Possession” schemes.
The searches target companies including AVJ Developers (India) Pvt. Ltd. and Rudra Buildwell Construction Pvt. Ltd. The investigation is being conducted under the Prevention of Money Laundering Act (PMLA), reported NDTV.
The probe focuses on subvention schemes under which homebuyers were encouraged to take housing loans on the promise that developers would pay their equated monthly instalments (EMIs) until possession of the flats. Under the alleged arrangement, banks disbursed sanctioned loan amounts directly to the builders, while the developers were responsible for servicing the loans until the properties were handed over.
According to the allegations under investigation, several buyers did not receive possession of their homes even after years of waiting. At the same time, developers allegedly defaulted on EMI payments, leaving banks to seek repayment from the homebuyers, who were then burdened with outstanding loan liabilities and financial losses.
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The ED is examining the flow and utilisation of housing-loan funds obtained in the names of homebuyers. Investigators are looking into whether the money was transferred to other companies, projects or assets and whether funds were diverted from their intended purpose.
The money-laundering investigation follows two CBI FIRs registered in July 2025 pursuant to directions from the Supreme Court. The ED subsequently registered Enforcement Case Information Reports and began examining the financial transactions linked to the alleged irregularities.
The investigation also focuses on allegations of a possible nexus between banks and developers that may have facilitated the subvention arrangements and exposed homebuyers to financial risks, according NDTV.
The latest searches highlight concerns surrounding “No EMI Till Possession” schemes, particularly where construction and delivery are delayed. The ED's investigation is continuing, and the allegations against the companies and individuals involved remain subject to further investigation and legal proceedings.
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