ED Raids CHD Developers, Ninex in Money Laundering Probe Over Alleged Homebuyer Fraud

The Enforcement Directorate (ED) on Wednesday conducted searches at multiple locations across Delhi-NCR as part of a money laundering investigation into alleged fraud involving homebuyers through subvention-based housing schemes .

The searches were carried out at premises linked to three real estate companies CHD Developers Ltd., Ninex Developers Ltd. and Manju J Homes (India) Ltd. under the provisions of the Prevention of Money Laundering Act (PMLA) . At least five locations associated with the firms were searched as part of the ongoing probe.

The ED investigation follows three FIRs registered by the Central Bureau of Investigation (CBI) in 2025 on the directions of the Supreme Court . The CBI cases were initiated over allegations that builders had misled and financially harmed homebuyers and investors through subvention schemes.

Under such schemes, developers typically offer buyers incentives such as “no EMI till possession” , with the builder agreeing to pay loan interest until the flat is handed over. These arrangements are designed to make property purchases more attractive by reducing the immediate financial burden on buyers.

However, investigative agencies have alleged that in the cases under scrutiny, several buyers continued to face loan obligations even after significant delays in project completion and non-delivery of promised homes. The probe agencies have accused the developers of failing to provide possession despite the passage of years. The ED has alleged that funds collected from homebuyers were diverted to other projects or used for purposes unrelated to the intended developments, resulting in the generation of proceeds of crime under the PMLA.

The case highlights wider concerns around transparency and accountability in the real estate sector, particularly regarding delayed housing projects, financial commitments made to buyers, and the misuse of financing arrangements. Regulatory measures such as the Real Estate (Regulation and Development) Act (RERA) were introduced to strengthen consumer protection, improve project disclosures, and provide grievance redressal mechanisms for homebuyers.

The companies involved could not be contacted immediately for their comments on the ED action. The investigation is ongoing.