The Supreme Court on Tuesday permitted the Central Bureau of Investigation (CBI) to register six additional regular cases into the alleged “unholy nexus” between banks and real estate developers accused of duping homebuyers through fraudulent housing schemes in Mumbai, Bengaluru, Kolkata, Mohali and Prayagraj.
A bench of Justices Surya Kant, Ujjal Bhuyan and N Kotiswar Singh allowed the agency to proceed after noting that its preliminary inquiries in several projects outside the Delhi-NCR region had revealed cognisable offences. Additional Solicitor General Aishwarya Bhati, appearing for the CBI, told the court that the agency has completed preliminary examinations in these projects and was prepared to move forward with full investigations.
The matter arises from a series of petitions filed by over 1,200 homebuyers who alleged they were forced by banks to pay EMIs despite not receiving possession of their flats. Many of these buyers had booked homes under the controversial subvention scheme, in which banks disbursed sanctioned loan amounts directly to developers, who were then obligated to pay EMIs until possession was handed over. When developers defaulted, the burden shifted onto buyers.
The apex court has previously expressed concern over collusion between developers, banks, and even officials of development authorities. On July 22, the court allowed the CBI to register 22 cases involving builders and authorities in Delhi-NCR. The present order extends the probe to projects beyond NCR.
The CBI, in a sealed cover report, informed the court that cognisable offences were made out in projects outside NCR, except for those involving Supertech Ltd., which is subject to separate proceedings. Bhati submitted that the agency was ready to conduct search and seizure operations to expedite the investigation.
The bench directed that relevant portions of the CBI’s report be shared with amicus curiae Rajiv Jain for further assistance.
The amicus curiae earlier described Supertech Ltd. as the “main culprit” in duping homebuyers. Reports submitted to the court indicated that Supertech had availed loans amounting to over ₹5,157 crore since 1998, while Corporation Bank alone had advanced more than ₹2,700 crore to various builders under subvention schemes.
The Supreme Court has already permitted multiple inquiries against Supertech, including one preliminary enquiry covering eight different cities where the company’s projects are located.
By allowing six additional cases, the apex court has widened the scope of the investigation into what it earlier described as a “prima facie nexus” between builders and banks across key real estate hubs of the country. The findings are expected to bring accountability not only to developers but also to financial institutions and regulatory authorities involved in the schemes.
The matter will continue to be monitored by the top court as the CBI proceeds with investigations across multiple jurisdictions.
