NEW DELHI: The Supreme Court has authorised the Central Bureau of Investigation (CBI) to register cases and conduct a preliminary investigation into a massive real estate scam involving collusion between real estate developers and banks. The matter concerns housing projects across Delhi-NCR, where thousands of homebuyers were allegedly defrauded through non-existent or stalled projects financed through questionable loans.
Court Calls CBI Report “Eye-Opening”
A sealed report submitted by the CBI was reviewed by the bench of Justice Surya Kant and Justice N. Kotiswar Singh, which found the revelations “eye-opening.” The court observed that homebuyers were trapped in loans arranged jointly by developers and banks, even when the housing projects were not viable or never intended to be completed. This led to massive financial stress among the buyers, who continued to repay loans for undelivered properties.
The court was responding to a petition that highlighted how real estate companies, in collusion with certain banks, facilitated home loans to buyers and then siphoned off the funds without executing the promised projects.
CBI to File 22 FIRs in Delhi-NCR
The CBI informed the apex court that it is preparing to register 22 separate cases in the Delhi-NCR region against various builders and bank officials accused of corruption and criminal conspiracy. Additional Solicitor General Aishwarya Bhati, representing the CBI, informed the court that over 58 properties have already been examined and more than 1,000 witnesses have been questioned so far. The agency also sought additional time to expand its investigation to builders in other cities.
The court granted the CBI six more weeks to complete its probe and permitted the agency to approach the bench in case of procedural hurdles. The bench noted that the matter impacts thousands of citizens and warned that more real estate developers may soon fall under investigative scrutiny.
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The Supreme Court has expressed satisfaction with the current progress of the investigation and directed the CBI to continue without delay. The court emphasised that any obstruction in the probe should be immediately brought to its attention for necessary orders.