The Supreme Court of India has allowed the Central Bureau of Investigation (CBI) to register six more cases against builders accused of colluding with banks to defraud homebuyers. This decision comes amid ongoing investigations into real estate projects in major cities including Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj.
This ruling follows a bench of Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh, which granted the CBI permission after the agency completed its preliminary inquiry. Additional Solicitor General Aishwarya Bhati stated that the investigations pertained to various builders apart from Supertech Ltd, which remains outside the Delhi-NCR context.
The CBI’s comprehensive inquiry revealed sufficient grounds to establish cognizable offences, prompting the Supreme Court to authorise the registration of regular cases. Bhati emphasized that the CBI seeks to expedite investigations and conduct necessary searches.
In a previous judgement on July 22, the court had permitted the CBI to register 22 cases against builders operating mainly in the NCR, stating a six-week deadline for a preliminary inquiry concerning projects outside the national capital. This extensive investigation highlights the growing concern over the malpractices in the real estate sector.
Under various subvention schemes, banks directly disbursed sanctioned amounts to builders, who were supposed to manage the loan repayments until the homebuyers received their property. However, many builders defaulted on their payments, compelling banks to recover the EMIs from unsuspecting buyers.
Furthermore, the Supreme Court received multiple petitions from over 1,200 homebuyers who alleged they were unfairly charged EMIs for properties they had yet to receive. Many of these complaints emerged from developments in Noida, Greater Noida, and Gurugram, highlighting systemic issues in real estate financing and sale practices.
The Supreme Court’s involvement has grown increasingly crucial since it first allowed five preliminary inquiries related to builders in the NCR in March. This included a specific inquiry involving Supertech Ltd, which has been described by the amicus curiae as the “main culprit” committing fraud against homebuyers.
In total, Supertech Ltd has faced scrutiny due to its inability to deliver promised homes, despite securing loans estimated at Rs 5,157.86 crore since 1998. The company’s ties to banks, including Corporation Bank, which reportedly loaned over Rs 2,700 crore, raise significant concerns about the collaborative financial practices between banks and builders.
As the investigation unfolds, the court’s actions signify a determined fight against corruption and fraud in the housing sector, pushing for accountability on behalf of the aggrieved homebuyers.
This judicial scrutiny underscores a critical turning point in how the Indian real estate sector operates, as regulators and the judiciary grapple with ensuring the rights of consumers amid financial controversies.
