CBI searches 12 locations in 3 cities over alleged builder-financial institution nexus

The latest market report highlights that The Central Bureau of Investigation (CBI) carried out searches at 12 locations across Bengaluru, Mumbai and Pune on September 10, 2026, in connection with five newly registered cases involving an alleged nexus between real estate builders and officials of financial institutions.

The agency stated the cases were registered on the directions of the Supreme Court. Four of the five cases relate to projects linked to Ozone Group and its associated entities in Bengaluru and Mumbai, while ccccthe fifth has been filed against M/s Vanavas Balasam over a project in Bengaluru.

According to the CBI, the cases involve allegations of criminal conspiracy, cheating, criminal breach of trust and misconduct by financial institution officials arising from their alleged collusion with builders.

The agency stated a substantial number of homebuyers, who claim to have suffered losses over several years due to fraudulent conduct and financial irregularities by builders, had petitioned the Supreme Court for relief, leading to the court’s directions.

During the searches, investigators seized documents and digital devices, which are now being examined as part of the probe. The CBI stated the investigation is aimed at tracing a wider alleged conspiracy involving diversion of funds and fraudulent practices within the real estate sector.

With these five cases, the CBI’s total tally of cases registered on the Supreme Court’s directions in the matter has risen to 55, from 50 previously. The agency stated it remained committed to pursuing the cases in a timely and impartial manner, with a focus on holding those responsible for economic offences accountable and protecting the interests of affected homebuyers.

It further noted that anyone found to have violated the law or regulatory guidelines would face legal consequences.

The action forms part of a broader, ongoing crackdown by the agency into alleged financial irregularities in the real estate sector, which has drawn scrutiny following complaints from homebuyers across multiple cities.

The Supreme Court’s continued monitoring of the matter suggests further cases and searches could follow as the investigation progresses across the builder-lender cases already under examination.