NEW DELHI: The Supreme Court directed a special CBI court to take cognizance within two weeks of three chargesheets filed by the agency concerning the “unholy nexus” between banks and developers that has defrauded homebuyers in NCR, and to proceed with the trial.
A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi was informed by Additional Solicitor General Aishwarya Bhati, representing the CBI, that significant progress in investigating all 25 homebuyer cases would be achieved by March.
Last July, the court permitted the CBI to initiate 22 cases regarding the nexus between banks and developers defrauding NCR homebuyers through a subvention scheme.
Under this scheme, banks disburse approved loan amounts directly to builders, who must then pay monthly installments until flats are delivered to homebuyers.
When builders defaulted on these installments, banks sought repayment from homebuyers in accordance with the tripartite agreement.
The bench, addressing pleas from over 1,200 distressed homebuyers, issued new directives after considering submissions from Bhati and amicus curiae Rajiv Jain.
Bhati informed the court that the CBI had filed three chargesheets in Delhi’s Rouse Avenue court, which have yet to be acknowledged.
The bench instructed the trial court to acknowledge the chargesheets within two weeks and to expedite the proceedings.
It further directed the CBI to share copies of the chargesheets with the amicus curiae, who will inform the bench about the investigation’s status and integrity.
The CBI has incorporated police officers from Uttar Pradesh and Haryana to assist in the ongoing investigations.
The bench advised the CBI to consider filing more FIRs if additional complaints arise.
It also ordered 23 banks and financial institutions involved in these cases to deposit Rs 10 lakh each into a special account at the Union Bank of India to cover expenses incurred by the amicus curiae in assisting the court.
Previously, the bench had approved the CBI’s conversion of six preliminary inquiries against various builders and banks into 22 formal cases for further investigation. The number of cases has since increased.
Entities under scrutiny include NCR builders and development authorities in Uttar Pradesh and Haryana.
The bench commended the CBI for their efforts in recognizing the severity of the issue, interviewing over 1,000 individuals and visiting 58 project sites, and instructed them to conclude the investigation swiftly.
The court noted that the CBI continues its investigation into a seventh preliminary inquiry regarding builders’ projects outside the NCR in cities such as Mumbai, Bengaluru, Kolkata, Mohali, and Allahabad.
It is addressing petitions from more than 1,200 homebuyers who booked flats via subvention plans in diverse housing projects throughout NCR, particularly in Noida, Greater Noida, and Gurugram, alleging coercion by banks to pay installments without receiving possession of their flats.
On March 29 last year, the court allowed the CBI to register five preliminary inquiries into builders and projects within NCR, including Noida, Greater Noida, Gurugram, Ghaziabad, and along the Yamuna Expressway.
One preliminary inquiry against major builder Supertech Limited was also sanctioned. A total of 799 homebuyers have appealed against Supertech in 84 separate petitions, concerning projects in eight different cities.
This court has tasked the CBI with sharing parts of the sealed report with the amicus curiae, deemed necessary for transparency.
The CBI has been instructed to review the amicus’s report, termed an “eye-opener,” which underscores the necessity for transparency among development authorities, including RERA, and strategies to safeguard homebuyer interests against unscrupulous builders.
According to the amicus’s findings, a handful of homebuyers were offered possession but declined, opting instead for litigation.
On April 29, 2025, the apex court mandated the CBI to initiate seven preliminary inquiries against NCR builders, including Supertech Limited.
Expressing disapproval of the collusion among development authority officials, banks, and builders to defraud homebuyers, the court identified a prima facie connection between well-known banks and builders in regions such as Noida, Gurugram, Yamuna Expressway, Greater Noida, Mohali, Mumbai, Kolkata, and Allahabad.
Jain labeled Supertech Limited as the “primary offender” in deceiving homebuyers, while Corporation Bank has lent over Rs 2,700 crore to builders via subvention schemes.
The amicus’s report indicated that Supertech Limited alone has accumulated a total loan amount of Rs 5,157.86 crore since 1998.
