Following a Supreme Court order, the Central Bureau of Investigation (CBI) has registered 22 FIRs to investigate the alleged nexus between builders and banks in the Delhi-NCR region, concerning defrauded homebuyers. The Supreme Court's decision came after reviewing preliminary inquiries that revealed cognizable offenses, prompting a deeper investigation into the actions of builders, development authorities, and financial institutions.
The investigation was initiated based on petitions filed by over 1,200 homebuyers in the NCR, particularly in Noida, Greater Noida, and Gurugram. These homebuyers alleged that they were being forced by banks to pay EMIs for properties they had not yet received, a consequence of the "subvention scheme". Under this scheme, banks disbursed funds directly to builders, who were supposed to pay the EMIs until the flats were handed over to the homebuyers. However, many builders defaulted on these payments, leaving homebuyers to bear the financial burden.
The Supreme Court has been actively addressing this issue, with previous directives to the CBI to conduct preliminary inquiries into the affairs of builders and projects in the NCR. These inquiries revealed a concerning "unholy nexus" between banks and developers, leading to the current order for the CBI to register 22 cases. The CBI's efforts in understanding the gravity and magnitude of the issue have been appreciated by the court. The agency examined over 1,000 individuals and visited 58 project sites during its preliminary investigation.
The builders and development authorities in Uttar Pradesh and Haryana are under scrutiny. The CBI is tasked with expediting the investigation and bringing the matter to a logical conclusion, ensuring transparency and protecting the interests of the homebuyers. The court has clarified that homebuyers who have acted in bad faith, using litigation to delay payments, will not be allowed to misuse writ jurisdiction and must seek relief through proper legal channels.
The Supreme Court is also reviewing projects outside the NCR, including those in Mumbai, Bangalore, Kolkata, Mohali, and Allahabad. The CBI had previously registered seven preliminary inquiries against builders in the NCR, including Supertech Limited. The court expressed its disapproval of the collusion between development authorities, bank officials, and builders in defrauding homebuyers, noting a prima facie nexus between banks and builders in various cities.
The situation arose from banks disbursing huge loans to builders even before the completion of the projects. After the builders defaulted, the banks demanded EMIs from the homebuyers. The builders named in the CBI FIRs include Supertech Limited, AVJ Developers, Earthcon Universal Infratech, Rudra Buildwell Projects, Geotech Promoters, Shubhkamna Buildtech, Bulland Buildtech, Decent Buildwell, Rudra Buildwell Construction, Saha Infratech, Dream Procon, Logix City Developers, Jaypee Infratech and Sequel Buildcon.
In addition to directing the CBI investigation, the Supreme Court has also taken steps to address coercive actions against homebuyers. The court directed the Gurugram Sessions Judge to investigate such actions, highlighting the court's concern for the harassment faced by homebuyers.
