The Supreme Court of India recently issued a contempt notice to the Managing Director (MD) of Sammaan Capital (formerly Indiabulls Housing Finance Ltd.) for continuing recovery proceedings against a homebuyer, despite a clear stay order issued by the Court. The apex court directed the MD to appear before it and explain why contempt proceedings should not be initiated against him.
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The bench of Justice Surya Kant and Justice N Kotiswar Singh specifically ordered:
"The Managing Director of the Indiabulls Housing Finance Ltd. (now Sammaan Capital Ltd.) is directed to remain present in the Court on the next date of hearing to show-cause as to why contempt of court proceedings, under the Contempt of Courts Act, 1971, be not initiated against him."
The case stems from a petition where the Supreme Court had previously ordered a Central Bureau of Investigation (CBI) probe into an alleged "builder-banks" nexus in the National Capital Region (NCR). The Court had noted that certain real estate companies and banks had exploited homebuyers, pushing them into severe financial distress.
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The homebuyer, represented by counsel, claimed that Sammaan Capital continued to pursue loan recovery through coercive measures, including sending anti-social elements to the applicant's residence. This action was allegedly taken despite the Supreme Court’s stay order on such recovery proceedings.
In response to these allegations, the Supreme Court issued a contempt notice to the MD of Sammaan Capital and directed:
"No action for recovery of the house loan shall be taken against the applicant."
The Court’s strong stance against Sammaan Capital underscores its commitment to ensuring that judicial orders are respected. The matter is now scheduled for a hearing on July 22, 2025.
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Background of the Case:
This matter is part of a larger investigation where the Supreme Court had previously observed the misuse of power by some real estate companies and financial institutions in the NCR. The Court had ordered a CBI investigation to unearth the alleged nexus between builders and banks, which had led to the exploitation of innocent homebuyers.
Case Title: HIMANSHU SINGH AND ORS. Versus UNION OF INDIA AND ORS., SLP(C) No. 7649/2023 (and connected cases)
