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CBI files charge sheet against AVJ Developers, banks, directors, and proxy homebuyers
The Central Bureau of Investigation (CBI) has filed a charge sheet naming AVJ Developers and related parties in a probe into the builder-bank nexus. The action includes AVJ and its subsidiaries, their directors, bank officials, and proxy homebuyers. The case is part of a broader inquiry into subvention schemes and alleged wrongful losses to financial institutions and homebuyers.
Why It Matters
This charge sheet represents a significant step in a high-profile investigation into alleged fraud and collusion between builders and lenders that affected numerous homebuyers and banks, potentially impacting insolvency proceedings and future enforcement.
Timeline
4 Events
May 7, 2026: ED conducts parallel money laundering investigation
May 7, 2026
The Enforcement Directorate (ED) is conducting a parallel money laundering investigation into the matter, based on the CBI FIRs cited in the probe.
May 7, 2026: AVJ placed under Corporate Insolvency Resolution Process (CIRP)
May 7, 2026
AVJ is currently under corporate insolvency resolution process (CIRP); the CIRP resolution professional has not responded to an email query according to the investigation details.
May 6, 2026: CBI files charge sheet against AVJ Developers and affiliates
May 6, 2026
The CBI filed a charge sheet against AVJ Developers (India) Pvt. Ltd., M/s AVJ Developers Pvt. Ltd., their directors, bank officers from three public and private sector banks, and proxy homebuyers for alleged involvement in a criminal conspiracy causing wrongful loss to financial institutions and homebuyers. The agency described this as a significant breakthrough in cases involving large-scale cheating and misconduct by public servants.
April 2025: Supreme Court orders CBI probe into builder-bank nexus
April 2025
The Supreme Court ordered a CBI probe into alleged disbursement of large loans to builders under subvention schemes before project commencement, following petitions by homebuyers alleging such practices.