CBI chargesheets Ithaca Estate and LGCL Urban Homes in Bengaluru homebuyers fraud

The Central Bureau of Investigation (CBI) has filed its 14th and 15th chargesheets in Bengaluru against two local builder firms, their directors, and officials from three major financial institutions. The chargesheets, submitted to the Special CBI Court in Bengaluru, allege a criminal conspiracy to cheat homebuyers and investors through housing projects.

The investigation targets housing projects developed by Ithaca Estate Pvt. Ltd. and LGCL Urban Homes (India) LLP.

In the first chargesheet, the CBI named M/s Ithaca Estate Pvt. Ltd., its director, and officials from HDFC Bank Ltd., ICICI Bank Ltd., and Indiabulls Housing Finance Ltd. The second chargesheet specifically names LGCL Urban Homes (India) LLP and its director.

According to the federal agency, the builder companies and their directors conspired with bank officials and private individuals to induce homebuyers and investors into purchasing properties. The CBI alleges that the accused used false assurances and fraudulent representations to obtain financial benefits through illegal and deceptive means.

During the course of the investigation, the CBI gathered substantial documentary and oral evidence. The agency filed the chargesheets under relevant provisions of the Indian Penal Code relating to criminal conspiracy, cheating, and criminal breach of trust. The accused also face charges under the Prevention of Corruption Act.

This local action forms part of a larger, nationwide probe ordered by the Supreme Court of India into the alleged diversion of homebuyers’ funds and cheating by real estate developers.

The CBI is currently investigating 34 other cases involving various builder companies and unidentified officials of banks and financial institutions.

With these latest filings, the agency has submitted a total of 15 chargesheets in connection with the homebuyers' fraud investigation. Previous chargesheets have been filed against several other developers, including Rudra Buildwell Constructions Pvt. Ltd., Dream Procon Pvt. Ltd., Jaypee Infratech Ltd., AVJ Developers (India) Pvt. Ltd., CHD Developers Pvt. Ltd., Sequel Buildcon Pvt. Ltd., Logix City Developers Pvt. Ltd., Manju J Homes India Ltd., Shubhkamna Buildtech Pvt. Ltd., Ninex Developers Ltd., Decent Buildwell Pvt. Ltd., and Rudra Buildwell Projects Pvt. Ltd., alongside their directors and associated financial institution officials.