The Supreme Court of India has authorized the Central Bureau of Investigation (CBI) to register six more cases concerning the alleged nexus between banks and real estate developers in defrauding homebuyers. The order, issued on Tuesday, September 23, 2025, expands the CBI's investigation beyond Delhi-NCR to include projects in Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj.
The decision was made by a bench comprising Justices Surya Kant, Ujjal Bhuyan, and N. Kotiswar Singh. Additional Solicitor General Aishwarya Bhati, representing the CBI, informed the court that preliminary inquiries into projects outside Delhi-NCR, excluding those of Supertech Ltd., revealed evidence of cognizable offenses. The court directed Bhati to share relevant portions of the sealed cover report with amicus curiae Rajiv Jain.
This order follows the Supreme Court's earlier directive on July 22, 2025, which permitted the CBI to register 22 cases related to similar allegations within Delhi-NCR. These cases focused on projects in Noida, Greater Noida, Gurugram, and surrounding areas. The court had also granted the agency six weeks to complete preliminary inquiries into projects outside the NCR.
The core of the controversy revolves around the subvention scheme, a tri-partite agreement involving banks, builders, and homebuyers. Under this scheme, banks disburse loans directly to builders, who are then responsible for servicing the equated monthly installments (EMIs) until the flats are handed over to the homebuyers. However, many builders defaulted, leaving banks to demand repayments from homebuyers who had not received possession of their homes.
The Supreme Court has been openly critical of the apparent collusion between banks, builders, and development authorities. The court noted a prima facie nexus across several regions, including Mohali, Mumbai, Kolkata, and Prayagraj, in addition to NCR hubs. Earlier this year, on March 29, the court allowed the CBI to register five preliminary inquiries into projects in Noida, Greater Noida, Gurugram, Yamuna Expressway, and Ghaziabad, along with a separate case against Supertech Ltd.
The CBI has already registered 22 regular cases against companies, their directors, and other unknown bank officials. The court had previously directed the CBI to register one preliminary enquiry to probe projects of Supertech, and a separate one on housing projects under subvention schemes in Noida, Greater Noida, Yamuna Expressway Industrial Development Authority, Gurgaon, and Ghaziabad.
Amicus curiae Rajiv Jain's report highlighted the involvement of eight banks and home finance companies – Indiabulls Housing Finance, PNB Housing Finance, Dewan Housing Finance, HDFC, ICICI Bank, L&T Housing Finance and Aditya Birla Housing Finance – in 21 projects. Jain also found that Supertech alone secured over Rs 5,157 crore from banks and financial institutions since 1998 and suggested investigation into Supertech's links with Corporation Bank, IDBI Bank, Punjab & Sind Bank, India Bank, and PNB. Corporation Bank is reported to have advanced over Rs 2,700 crore to various builders through subvention-linked lending.
The ongoing hearings represent one of the most far-reaching judicial interventions in India's housing sector. Over 1,200 homebuyers, particularly in Noida, Greater Noida, and Gurugram, have petitioned the Supreme Court, stating that they were being burdened with EMIs for undelivered flats. For these homebuyers, the case may determine whether they ever receive their homes or financial relief.
The Supreme Court's consistent emphasis on accountability suggests that both financial institutions and developers may face heightened scrutiny. The outcome of these investigations and hearings could reshape rules governing real estate financing and bring accountability to developers, financial institutions, and regulatory authorities involved.
