The Supreme Court of India on Tuesday directed the Central Bureau of Investigation (CBI) to register seven preliminary inquiries into the alleged collusion between real estate developers and banks across Delhi and the National Capital Region (NCR). The decision came in response to a series of petitions filed by homebuyers, who claimed they were being forced to pay EMIs for under-construction homes despite not receiving possession.
A bench comprising Justices Surya Kant and N Kotiswar Singh expressed strong concern over the ongoing harassment faced by homebuyers under subvention schemes, particularly in areas such as Noida, Greater Noida, Gurugram, Yamuna Expressway, and Ghaziabad.
“The builders and banks have taken poor homebuyers to ransom,” the bench remarked, emphasizing that an independent investigation was the need of the hour to uncover the full extent of the alleged “unholy nexus.”
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Supertech First Under Scanner as Apex Court Expands Probe Scope
The first of the CBI’s preliminary inquiries will focus on Supertech Limited, a real estate giant already facing multiple allegations of regulatory violations and consumer fraud. Subsequent inquiries will widen the scope to include several other developers operating in the NCR, especially in regions plagued by stalled and delayed housing projects.
The court’s intervention comes as a critical relief for thousands of middle-class homebuyers who had booked flats under subvention schemes — arrangements wherein banks disburse loans to builders but buyers start EMIs even before possession is granted. Many petitioners alleged that banks had disbursed loan amounts prematurely, in violation of agreement terms, and were now coercing them for repayment.
The Supreme Court bench took note of the proposal submitted by the CBI, which recommended preliminary inquiries to examine the modus operandi, financial flows, and potential criminal intent behind these practices. The agency argued that only a deeper, structured investigation could reveal the role of banks, developers, and possibly regulatory lapses.
Coordination Across Agencies Ordered; RBI and State Police to Aid Probe
In addition to directing the CBI to lead the investigation, the Supreme Court ordered the Directors General of Police of Uttar Pradesh and Haryana to nominate officers to assist the probe. A Special Investigation Team (SIT) will be constituted, comprising CBI officials, selected state police personnel, and independent subject-matter experts. The apex court also instructed key regulatory bodies, including the Reserve Bank of India (RBI) and development authorities in the NCR, to appoint nodal officers who will facilitate access to relevant data and provide institutional support for the investigation.
The Supreme Court’s move has been hailed as a watershed moment by housing rights activists, who have long demanded accountability for the unchecked growth of subvention-based real estate financing models, often leaving buyers in the lurch. While the CBI has yet to disclose the names of other developers under scrutiny, sources indicate that the probe will examine project financing structures, irregular loan disbursals, and potential kickbacks or fraud between builders and lending institutions.
The matter is scheduled for further hearing after initial reports from the CBI are filed. Until then, the apex court has cautioned banks and developers against taking any coercive action on EMIs against buyers who have not received possession of their homes.