SC Orders CBI Probe Into Builder-Bank Nexus in Delhi-NCR, Focus on Supertech
In a significant move aimed at protecting the rights of aggrieved homebuyers, the Supreme Court on Tuesday directed the Central Bureau of Investigation (CBI) to conduct a detailed probe into the alleged “unholy nexus” between real estate developers and financial institutions in the Delhi-National Capital Region (NCR). The directive includes initiating seven preliminary inquiries, starting with an investigation into Supertech Limited, a prominent developer already facing scrutiny for multiple regulatory violations.
A bench comprising Justices Surya Kant and N Kotiswar Singh issued the order while hearing a batch of petitions from homebuyers. These buyers had booked flats under various subvention schemes in areas including Noida, Greater Noida, Ghaziabad, Gurugram, and along the Yamuna Expressway. Despite not receiving possession of their homes, many buyers claimed they were being harassed by banks to pay EMIs, thereby adding to their financial and emotional distress.
The court came down heavily on both builders and banks, observing that they had “taken poor homebuyers to ransom.” The bench remarked, “Homebuyers are made to cry. This is unacceptable,” while stressing the need for an independent and transparent investigation to bring out the truth behind these transactions.
The court accepted a proposal from the CBI, which had sought permission to launch preliminary inquiries to understand the intent and modus operandi of developers allegedly operating in collusion with banks and financial institutions. As part of the initial phase, the first CBI probe will zero in on Supertech Limited’s dealings. Subsequent inquiries will widen the scope to examine other real estate developers operating in the NCR, including projects in Noida, Greater Noida, Ghaziabad, Gurugram, and the Yamuna Expressway region.
Highlighting the systemic nature of the problem, the court noted that the relationship between real estate developers and financial institutions appeared to be part of a broader pattern that had led to immense hardship for thousands of homebuyers. The bench stated that such a nexus not only undermines consumer trust but also tarnishes the credibility of the banking and real estate sectors.
To aid the investigation, the court directed the Directors General of Police of Uttar Pradesh and Haryana to nominate senior officers who will be deputed to assist the CBI. A Special Investigation Team (SIT) will be formed, comprising CBI officials, selected state police officers, and subject-matter experts.
Furthermore, the Reserve Bank of India (RBI) and relevant development authorities have been asked to appoint nodal officers to coordinate with the investigative team. Their role will be to provide regulatory and procedural insights crucial to the inquiry.
The Supreme Court’s order marks a crucial step toward accountability in the real estate sector and offers a ray of hope for thousands of aggrieved homebuyers. With the CBI now tasked with uncovering the extent of the alleged collusion, the findings of the preliminary inquiries could have far-reaching implications for developers, financial institutions, and regulatory bodies alike.
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