The Supreme Court of India has given the Central Bureau of Investigation (CBI) the green light to register six new criminal cases pertaining to the alleged collusion between financial institutions and real estate developers to defraud homebuyers.
This approval comes in addition to the 22 existing cases already under investigation in the National Capital Region (NCR). The order expands the probe beyond NCR to prominent cities including Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj.
Expanding the Investigation Scope
The decision was made by a bench comprising Justices Surya Kant, Ujjal Bhuyan, and N. Kotiswar Singh following a submission by Additional Solicitor General Aishwarya Bhati. She informed the Court that after concluding preliminary inquiries related to builder projects outside Delhi-NCR, the CBI found sufficient grounds to establish cognisable offences.
The bench accordingly authorized the agency to register regular cases and initiate searches and seizures as necessary to facilitate swift investigations. The Court mandated that portions of the sealed enquiry report be shared with amicus curiae Rajiv Jain to assist judicial oversight.
The fraud involves subvention schemes where banks directly disburse loans to builders with an agreement that loan repayments (EMIs) be passed on to homebuyers only after possession is delivered. However, builders allegedly defaulted on EMIs to banks, prompting the banks to seek payments from homebuyers even without possession rights.
The case involves major developers including Supertech Limited, identified as a significant defaulter with loans amounting to over ₹5,157 crore since 1998. The investigations have implicated several banks such as Corporation Bank, IDBI Bank, Punjab and Sind Bank, among others.
Towards Transparency and Justice
This comprehensive investigation stems from petitions by over 1,200 homebuyers who claim harassment through payments for flats not delivered. The Supreme Court directed monthly updates to ensure timely justice and instructed state-level police officials and government authorities to facilitate a focused Special Investigation Team (SIT).
With the expanded scope of cases, the CBI is tasked with removing impediments to protecting the rights and investments of thousands of honest homebuyers.
The Logical Indian’s Perspective
This case shines a harsh light on systemic failures in real estate financing that mercilessly harm genuine homebuyers. The Logical Indian advocates steadfastly for enhanced transparency, institutional accountability, and stringent enforcement in housing and finance sectors.
A just investigation is necessary not only to punish unholy collusions but also to restore public confidence in India’s real estate market and banking framework.
