The Supreme Court on Wednesday expressed strong displeasure over the pace of the Central Bureau of Investigation’s probe into the alleged “unholy nexus” between banks and real estate developers accused of duping homebuyers under subvention schemes across Delhi-NCR and other cities. The Court warned that delays in the investigation would only deepen the hardship faced by thousands of affected buyers.
A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi rejected the CBI’s suggestion that certain cases involving defrauded homebuyers be transferred to state investigative agencies. The Court directed the CBI to continue investigating all cases itself and convert the preliminary enquiries into regular criminal cases.
“This court cannot wait for an indefinite period for the conclusion of the investigation,” the bench observed, adding that any delay “will only lead to more agony for the homebuyers who have already been harassed by the builders and developers, apparently in collusion and connivance with financial institutions and banks.”
Court Hearing Pleas of Over 1,200 Homebuyers
The Court was hearing a batch of petitions filed by more than 1,200 homebuyers, led by petitioner Himanshu Singh, who approached the Court through advocate Akshay Srivastava.
The homebuyers had booked flats under subvention schemes in various housing projects in the National Capital Region, particularly in Noida, Greater Noida and Gurugram. They alleged that banks were forcing them to pay loan instalments despite the flats not being handed over to them.
Under such subvention schemes, banks disburse the sanctioned home loan amount directly to builders. The builders, in turn, are supposed to pay the EMIs on the loan until possession of the flats is delivered to the buyers. However, once builders began defaulting on these payments, banks invoked the tripartite agreements and demanded EMIs directly from the homebuyers.
SC Questions CBI’s Approach, Seeks Timeline
During the hearing, the bench expressed concern over the CBI’s approach and warned that if the agency continued to delay progress, the Court might consider constituting a committee to oversee the investigation.
The Court also directed the CBI to submit an affidavit through a responsible officer detailing the status and pace of the probe in all related cases.
At the same time, the bench asked the agency to examine a report filed by amicus curiae Rajiv Jain on April 29 last year and provide a probable timeline for completion of the investigation.
The Court also noted that if the CBI was facing manpower constraints, it could seek assistance from the Economic Offence Wings of state police forces by writing to the respective Directors General of Police (DGPs).
Concerns Over Lack of Probe Against Bank Officials
The bench further expressed dissatisfaction that bank officials allegedly involved in the scheme were not being adequately investigated.
Advocate Pranav Sachdeva, appearing for another petitioner, argued that the requirement of prior sanction for prosecution under the Prevention of Corruption Act against erring bank officials should be dispensed with since the investigation was being monitored by the Court.
Additional Solicitor General Aishwarya Bhati, representing the CBI, told the Court that the agency would address any such legal hurdles.
Court Directs Claims to Be Routed Through Amicus Curiae
The Supreme Court also directed all affected stakeholders — including homebuyers, banks and builders — to submit their claims, suggestions and recommendations to the amicus curiae Rajiv Jain, who would examine them and place relevant material before the Court.
“Homebuyers, financial institutions or builders shall be at liberty to submit their claims, suggestions and recommendations to the learned amicus curiae for his consideration. No such claims shall be directly entertained by this court unless it is screened through the amicus,” the bench ordered.
Earlier Orders in the Case
The case has seen multiple directions from the Court over the past year as it monitors the investigation into the alleged fraud.
- On January 20, the Court directed a special CBI court in Delhi to take cognisance within two weeks of three chargesheets filed in cases relating to the bank–builder nexus in the NCR region.
- On September 23 last year, the Court permitted the CBI to register six additional regular cases involving alleged fraud in projects located in Mumbai, Bengaluru, Kolkata, Mohali and Prayagraj.
- Two months earlier, the Court had allowed the agency to register 22 cases concerning subvention scheme fraud in the National Capital Region.
- On April 29, 2025, the Court directed the CBI to initiate seven preliminary enquiries against builders in NCR, including Supertech Limited.
Amicus Report Flags Massive Loans to Builders
In his report submitted to the Court, amicus curiae Rajiv Jain identified Supertech Limited as the “main culprit” in the alleged fraud involving homebuyers.
The report also noted that Corporation Bank had advanced more than ₹2,700 crore to builders through subvention schemes, while Supertech alone secured loans amounting to ₹5,157.86 crore since 1998.
The Court earlier observed that there appeared to be a prima facie nexus between prominent banks, builders and certain development authority officials in several cities, including Noida, Gurugram, Yamuna Expressway, Greater Noida, Mohali, Mumbai, Kolkata and Allahabad, leading to large-scale hardship for homebuyers.
