The Supreme Court of India has ordered the Central Bureau of Investigation (CBI) to begin a thorough investigation into what it described as an “unholy nexus” between builders and banks operating in the National Capital Region (NCR). This order came in response to numerous complaints from homebuyers who have suffered due to delayed possession of flats and financial exploitation.
The Court emphasized that the initial focus of the investigation should be on Supertech Ltd, a prominent real estate developer. A bench of Justices Surya Kant and N. Kotiswar Singh directed the CBI to register and conduct seven preliminary enquiries, including one exclusively for Supertech and others covering projects across different regions and authorities.
Read Also:- Justice BR Gavai Appointed as 52nd Chief Justice of India, Becomes Second Dalit to Hold the Post
“The first preliminary enquiry shall pertain to the projects of M/s Supertech Ltd... five preliminary enquiries for projects under Noida, Greater Noida, Yamuna Expressway, Gurugram, and Ghaziabad,”
— Supreme Court Bench
The Court found serious concerns in the submissions made by Amicus Curiae Rajeev Jain and the CBI’s affidavit. According to reports, Supertech has over 21 projects spread across six cities. It had entered into agreements with 19 banks and housing finance companies (HFCs), and around 800 homebuyers are directly impacted.
“Supertech alone secured loans worth ₹5,157.86 crores since 1998, and eight banks were involved in most of its projects,”
— Amicus Curiae Report
Read Also:- Supreme Court Stresses on Mandatory Training for Commercial Court Judges
The issue involves loans disbursed under subvention schemes, where homebuyers were unknowingly used to obtain and funnel funds directly to builders. Many buyers are now forced to pay EMIs without receiving their flats.
“It’s a systematic failure by regulatory and financial institutions... banks disbursed loans directly to builders against RBI norms,”
— Homebuyers’ Petition
The Court instructed the States of Haryana and Uttar Pradesh to provide names of police officers for deputation to the CBI within one week. These officers, along with Chartered Accountants from ICAI and CBI staff, will form Special Investigation Teams (SITs) to handle the enquiries.
Read Also:- Supreme Court Declines to Quash FIRs Against TN Thowheed Jamath Members; Orders Joint Trial in Madurai
Additionally, nodal officers from development authorities, the Ministry of Housing and Urban Affairs, and RERA bodies of UP and Haryana must coordinate and provide full support to CBI. The Court also ordered banks, particularly Corporation Bank (which lent ₹2,477.54 crores), to fund the Amicus’s office and legal expenses.
“CBI is never in a tearing hurry to file FIRs unless it finds credible material,”
— Justice Surya Kant
Read Also:- Supreme Court Declines Fresh Petitions Against Waqf Amendment Act, Allows Intervention in Ongoing Case
Justice Kant clarified that a change in company management due to insolvency proceedings will not relieve anyone of legal liability. The Supreme Court plans to monitor the progress monthly to ensure justice for the affected homebuyers.
The ongoing case involves over 1,200 homebuyers across 170+ petitions, making it one of the largest judicial interventions into real estate fraud and financial mismanagement in India.
Case Title: HIMANSHU SINGH AND ORS. Versus UNION OF INDIA AND ORS., SLP(C) No. 7649/2023 (and connected cases)
Appearance: Senior Advocate Sanjeev Sen (for HDFC Bank); ASG Aishwarya Bhati (for CBI); Advocates Anshul Gupta, Aditya Parolia, Piyush Singh and Eshna Kumar (for homebuyers)
