The Supreme Court of India granted the Central Bureau of Investigation (CBI) permission on Tuesday to register six more cases related to the fraudulent activities between banks and builders, impacting homebuyers in Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj. This decision follows the court’s earlier allowance of 22 cases in the Delhi-NCR region, reflecting the judiciary’s strong stance against real estate fraud.
A bench comprising Justices Surya Kant, Ujjal Bhuyan, and N. Kotiswar Singh authorized the CBI to advance in its investigations. Additional Solicitor General Aishwarya Bhati, representing the CBI, confirmed that the agency concluded preliminary inquiries concerning various builders, excluding Supertech Ltd, which lies outside the NCR jurisdiction.
Upon evaluation, the CBI found sufficient evidence of cognizable offences warranting the registration of regular cases. The bench directed Bhati to provide relevant excerpts from the sealed cover report to amicus curiae advocate Rajiv Jain for further scrutiny.
On July 22, the Supreme Court had previously green-lit the agency’s registration of 22 cases aimed at unearthing the “unholy nexus” that duped homebuyers in Delhi-NCR. The latest move expands the investigation to encompass builders and banks in more Indian metropolitan areas.
In a subvention scheme, banks typically channel funds directly into builders’ accounts. Builders are required to pay Equated Monthly Installments (EMIs) on these loans until the homebuyers take possession of their flats. However, issues arose when numerous builders started failing to repay these EMIs. Consequently, banks began to turn to homebuyers for repayment, further complicating the already distressing situation for those awaiting their properties.
The Supreme Court’s latest ruling comes amid a series of petitions filed by over 1,200 homebuyers, many of whom booked flats under these subvention schemes. They face undue pressure from banks to make payments despite lacking possession of their purchased properties, especially in regions like Noida, Greater Noida, and Gurugram.
Previously, on March 29, the apex court permitted the CBI to launch five preliminary inquiries regarding builders and projects in areas including Noida, Greater Noida, and Ghaziabad. A significant aspect of this issue involves Supertech Ltd, where 799 homebuyers have collectively appealed against the company across 84 cases from various cities.
On July 22, following the examination of a sealed CBI report, the court confirmed the necessity for further inquiries, concluding that there was a prima facie case of collusion between development authority officials, banks, and builders that sought to exploit homebuyers. The report detailed significant financial ties, highlighting Supertech Ltd as a key player in the fraudulent acts, which allegedly manipulated the subvention scheme.
The amicus curiae’s report pointed out that Supertech Ltd received loans exceeding Rs 5,157.86 crore since 1998. This extent of involvement prompted the bench to issue strong advisories and directions to the CBI, aiming for an expedited investigation to bring justice to the affected parties.
With these developments, the Supreme Court reiterates its commitment to protecting homebuyers and ensuring accountability among developers and financial institutions.
