CBI files 18th chargesheet in homebuyers fraud case against builder

The Central Bureau of Investigation (CBI) has filed its 18th chargesheet in a case involving alleged large-scale fraud against homebuyers, naming a builder company, its directors and officials, as well as officials of financial institutions.

According to ETRealty, citing the CBI, the chargesheet names MKHS Housing LLP, its designated partner Indiabulls Distribution Services Limited, now known as Indiabulls Nests Limited, and their directors and officials. Indiabulls Investment Advisors Limited, now known as Indiabulls Urban Residency Limited, and its directors have also been named.

The case relates to alleged fraudulent activities connected with a housing project in the Rajarhat town area of West Bengal's North 24 Parganas district. The chargesheet was filed before the CBI (Special) Court-II in Alipore.

The central agency has alleged that the accused builder company and its directors, in conspiracy with officials of a non-banking financial company (NBFC), induced homebuyers and investors through false assurances and fraudulent representations.

The CBI further alleged that the accused obtained financial benefits through illegal and deceptive means. The agency said its investigation had uncovered substantial evidence in support of the allegations.

The chargesheet has been filed under provisions of the Indian Penal Code relating to criminal conspiracy, abetment, cheating and criminal breach of trust, according to the CBI statement cited by ETRealty.

The latest filing is part of a wider investigation into alleged cheating of homebuyers and diversion of funds involving builders and officials of financial institutions. The CBI is currently investigating 31 other cases registered following directions from the Supreme Court.

The agency had previously filed 17 chargesheets against various builder companies, their directors and officials of banks and financial institutions. The latest filing brings the number of chargesheets in these cases to 18.

For homebuyers, the investigation highlights the role of financial institutions alongside developers in cases where allegations involve misleading representations and the diversion of funds. However, the allegations in the present case remain subject to judicial proceedings, and the chargesheet itself does not establish guilt.

The CBI's investigation into the remaining cases is ongoing.