The
Supreme Court on Tuesday directed the Central Bureau of Investigation (CBI) to
register seven preliminary inquiries into what it described as an alleged
“unholy nexus” between real estate developers and banks.
The
order was passed by a bench of Justices Surya Kant and N Kotiswar Singh while
hearing multiple petitions filed by homebuyers who had invested in housing
projects under subvention schemes in Noida, Greater Noida, Gurugram, and nearby
areas. Homebuyers complained that banks were forcing them to pay EMIs even
though they had not yet received possession of their flats.
The first CBI probe
will specifically examine the dealings of Supertech Ltd, a well-known developer
already facing scrutiny for multiple violations.
The
second inquiry will expand the investigation to include projects across Noida,
Greater Noida, Yamuna Expressway, Gurugram, and Ghaziabad.
While
delivering the order, the court strongly criticised the way banks and builders
were treating ordinary citizens. “Homebuyers are made to cry,” the bench
remarked, stating that many developers and financial institutions had “taken
poor homebuyers to ransom”. Calling the situation deeply unfair, the court
stressed the need for a fair and independent probe. “It is time to unearth the
truth,” the bench said.
The Supreme Court’s
directive follows a proposal by the CBI, which argued that preliminary
inquiries were necessary to fully understand the intentions and methods used by
builders in collaboration with financial institutions.
To
support the investigation, the court has asked the Directors General of Police
(DGPs) of Uttar Pradesh and Haryana to nominate officers who will work closely
with the CBI. A Special Investigation Team (SIT) will also be formed,
consisting of CBI officials, selected police officers, and experts in finance
and real estate.
In
addition, the Reserve Bank of India (RBI) and relevant development authorities
will appoint nodal officers to ensure smooth cooperation and data sharing
during the probe.