“Papa, when are we moving into our new flat?”
Ramesh looked away from the rearview mirror, unable to meet his daughter’s hopeful eyes. “Soon, beta, very soon,” he lied, clenching the steering wheel.
He had said the same thing last year. And the year before that.
This is not a story of delays. This is a story of betrayal, crafted jointly by real estate giants and reputed banks under the garb of something that sounded innocent: subvention schemes.
The Dream That Became a Trap
For middle-class families in Delhi-NCR, buying a home is more than an investment, it’s a rite of passage. Builders knew that. Banks knew that. So they sold people a dream.
Here’s how it worked:
You book a flat in a fancy upcoming project. You pay a small amount upfront, say 10-15%, and the builder takes a loan from the bank on your behalf.
They promise to pay the EMIs till the flat is ready. You get your dream home without any pressure.
Except, most of these dreams were built on paperwork, not cement.
“EMI Starts, But Construction Doesn’t”
Nitin, an IT professional from Noida, recalls signing up for a luxurious apartment project in Greater Noida back in 2015.
“The builder promised to start construction in six months. The bank sanctioned the loan. I was told I wouldn’t have to pay a single EMI until I got possession. But a year later, there was no construction—just a barren plot and a flashy hoarding with the word ‘Coming Soon.’”
He started getting EMI messages from the bank two years into the project.
“When I called the builder, they stopped taking my calls. The bank said you are the borrower, not the builder. Pay up.”
And just like that, Nitin was now paying ₹38,000 every month for nothing.
The Nexus No One Spoke About
What if we told you the builders and banks were in on it together?
The Supreme Court seems to think so.
In a recent hearing, Justice Sanjiv Khanna bluntly called it an “unholy nexus” between builders and banks.
The top court has now ordered a CBI investigation into real estate loan frauds that may span across Delhi-NCR and even reach cities like Mumbai, Bengaluru, and Kolkata.
Here’s how deep the rabbit hole goes:
The banks disbursed full or partial loan amounts directly into the builder’s account, sometimes without even verifying if the construction had started.
In many cases, the buyers hadn’t even signed final loan documents—but on paper, the disbursement was marked complete.
One homebuyer recalls:
“I found out that the builder had taken the full loan in my name months ago. I hadn’t seen a single brick laid. But the bank said the money was gone—and I had to pay.”
Builders, in effect, used these buyers as loan conduits—just a name on paper to extract money from banks.
This wasn’t just fraud. It was corporate looting with clean shirts and company logos.
Victims by the Thousands
Imagine paying ₹40,000 every month for a house you’ve never lived in.
Now imagine doing that for 6 years.
Some buyers defaulted. Others ran into mental health issues. Some even considered selling gold, breaking FDs, or pulling children out of private schools to meet the burden.
A few committed suicide.
This is not drama—these are actual case reports mentioned in court affidavits.
Justice, Finally?
Thanks to a Supreme Court intervention, a Special Investigation Team (SIT) is being formed.
The CBI will begin investigating loan disbursement practices, and the RBI has been asked to appoint nodal officers to aid the investigation.
Will it fix everything? Probably not.
Will it bring accountability? Maybe.
Will it scare those who took middle-class India for granted?
Let’s hope so.
A Lesson for Every Homebuyer
If you’re a buyer today, here’s the takeaway from this nightmare:
Don’t trust subvention schemes.
Always verify that the builder has all the approvals before you sign.
If a deal sounds too smooth to be true, it probably is.
Closing Scene
Ramesh walks past the half-finished structure that was supposed to be his “forever home.” Iron rods poke out from the top floor like broken promises. His EMI is due next week.
“You know,” he says, almost to himself, “I didn’t just lose money. I lost time. I lost peace.”
Then he walks away. But this time, he’s not just walking. He’s filing a complaint.
