The Supreme Court granted permission on Tuesday for the Central Bureau of Investigation (CBI) to register six additional cases focusing on the intricate fraud involving builders and banks targeting homebuyers in real estate projects in cities like Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj.
This decision follows a hearing where a bench comprised of Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh acknowledged the completion of preliminary inquiries by the CBI. The agency’s investigations confirmed that infractions occurred in housing projects managed by various builders, except for Supertech Ltd, which operates outside the Delhi-NCR region.
Additional Solicitor General Aishwarya Bhati, representing the CBI, informed the court that the agency expressed readiness to proceed with registering six formal cases in pursuit of expediting the investigation. The CBI aims to promptly conduct search and seizure operations related to these cases.
The Supreme Court has previously directed the CBI to thoroughly investigate this ‘unholy nexus’ between financial institutions and developers, which led to significant financial losses for homebuyers. On July 22, the apex court permitted the CBI to register 22 cases dedicated to this ongoing probe concerning the fraud perpetrated against homebuyers primarily in Delhi-NCR, allowing six weeks for preliminary inquiries related to projects outside NCR.
The CBI unearthed a troubling pattern where banks, under the subvention scheme, directly disbursed loans to builders while homebuyers were compelled to begin paying EMIs prior to receiving possession of their properties. This scheme collapsed once builders defaulted on their EMI obligations, resulting in banks turning to homebuyers for repayments.
An extensive investigation revealed that numerous homebuyers, exceeding 1,200, filed petitions asserting that they were unjustly pressured by banks to pay EMIs despite lacking access to their purchased homes. Homebuyers in Noida, Greater Noida, Gurugram, and surrounding areas are among those adversely impacted.
In a ruling on March 29, the Supreme Court had already authorized the CBI to initiate five preliminary inquiries against several builders involved in Noida, Greater Noida, Gurugram, and Ghaziabad. The investigation also led to a separate inquiry for Supertech Ltd, which has faced scrutiny from 799 homebuyers through multiple appeals lodged in the Supreme Court concerning its projects in eight different cities.
Earlier on July 22, the Supreme Court reviewed a sealed report from the CBI, revealing that after their preliminary investigations, 22 regular cases needed registration for deeper investigation involving identified culprits in the builder-bank collusion.
On April 29, the CBI was directed to initiate seven preliminary inquiries against builders associated with NCR projects, including Supertech Limited itself. The reported collusion between banks, builders, and the development authority drew significant criticism from the Supreme Court.
During the proceedings, the court noted finding a prima facie connection between established banks and builders across diverse locations such as Noida, Gurugram, Greater Noida, Mohali, as well as major cities like Mumbai, Kolkata, and Prayagraj. The amicus curiae’s evaluation indicated that Supertech Ltd has earned a notorious reputation in the fraud against homebuyers, with Corporation Bank having disbursed loans exceeding Rs 2,700 crore through these schemes.
According to reported data, Supertech Ltd secured loan amounts totaling Rs 5,157.86 crore since 1998, making it a prominent case in the ongoing investigation into fraud against homebuyers.
