SC Eyes CBI Probe Into Builder-Bank Scam
• Homebuyers Trapped in Loan Fraud
• SIT Likely to Expose Real Estate Racket
Unmesh Gujarathi
Sprouts Exclusive News
In a major development, the Supreme Court has raised serious concerns about the alleged nexus between real estate companies and banks in the National Capital Region (NCR), stating that poor homebuyers have been taken to ransom. The Court hinted at directing a CBI probe into the matter, emphasizing the need for a thorough investigation.
A bench of Justices Surya Kant and N Kotiswar Singh was hearing the grievances of homebuyers who claimed they were being forced to pay EMIs despite not having possession of their flats due to delays by builders. As per homebuyers, the loans were disbursed illegally to builders in violation of RBI guidelines, and they were merely used as a medium to transfer funds from banks to developers.
Sprouts News has learned that many of these flats were purchased under a subvention scheme, where builders initially covered the EMIs. However, when builders defaulted, banks initiated recovery proceedings against homebuyers instead. This has led to widespread litigation, with homebuyers arguing that they never received the loan amounts themselves but are now being forced to bear the burden.
Also Read: A massive ₹1,000 Multi-Crore Scam in Vikhroli Building Development Uncovered.
The Supreme Court noted that both builders and banks have failed to provide details on delayed projects and their current status. The bench stressed the need for an in-depth probe, stating, “People invested their hard-earned money, but poor homebuyers have been taken to ransom. SIT should be constituted to probe the nexus between builders and banks, and it will give a report to us. We will ask CBI to register a case… every bank must be brought into the investigation.”
Additionally, the Court indicated that interim resolution professionals involved in insolvency proceedings against real estate companies would also be scrutinized. However, those who acted in good faith “need not worry,” the bench remarked.
Last July, a bench of Justices Kant and Ujjal Bhuyan had granted interim protection to homebuyers, making it clear that no coercive action—including check bounce complaints under Section 138 of the Negotiable Instruments Act—should be taken against them.
Sprouts News will continue to follow this critical issue, bringing updates on the Supreme Court’s next steps and potential CBI investigation. Stay tuned for further developments.
