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The Supreme Court has approved the Central Bureau of Investigation (CBI) to register six new cases involving alleged fraudulent activities between banks and builders, which have impacted homebuyers in Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj. This follows earlier permissions for the CBI to probe 22 similar cases in the National Capital Region (NCR). The investigations focus on builders under the subvention scheme, where banks directly pay builders, while homebuyers may face EMI demands even before possession. The court has directed the CBI to submit reports to the appointed amicus curiae.
The Supreme Court has granted the Central Bureau of Investigation (CBI) permission to register six additional cases related to alleged fraudulent practices involving banks and builders, affecting homebuyers in multiple cities, including Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj. These cases are separate from earlier investigations into projects in the National Capital Region (NCR) and reflect ongoing concerns about subvention schemes where banks release funds directly to builders. Advertisement
A bench of Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh noted that preliminary inquiries by the CBI indicated cognizable offenses, and therefore, the agency is now authorized to register regular cases and carry out detailed investigations. The CBI has also expressed readiness to conduct searches and seizures to gather evidence.
Earlier, the Supreme Court had allowed the CBI to investigate 22 cases involving builders in the NCR, including Noida, Greater Noida, and Gurugram, as well as development authorities in Uttar Pradesh and Haryana. The CBI had six weeks to complete preliminary inquiries into projects outside the NCR, which has now paved the way for the new six cases.
These investigations focus on subvention schemes, where banks disburse loan amounts directly to builders? accounts. Under these schemes, builders are expected to pay Equated Monthly Installments (EMIs) to banks until homebuyers receive possession of flats. However, when builders default on EMIs, banks have demanded that homebuyers continue paying EMIs, even without possession, leading to financial stress and complaints from over 1,200 homebuyers.
The Supreme Court is currently hearing multiple petitions from homebuyers who booked flats under subvention plans in NCR projects. Many of them claim they are being unfairly asked to pay EMIs while their flats remain incomplete.
In a related case, the CBI had arrested Supertech Ltd and its promoter, RK Arora, for allegedly defrauding IDBI Bank of INR 126 crore. This arrest highlights the ongoing effort to address fraudulent activities in the real estate and banking sectors, emphasizing accountability and transparency.
Source PTI
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