The Supreme Court is worried about the troubles of many homebuyers. It is thinking about ordering a CBI investigation into the matter. Many people have lost their money due to housing fraud and delays. The court wants to ensure justice for affected homeowners.
New Delhi: The Supreme Court raised significant concerns regarding the relationship between banks and builders, stating that a probe by the Central Bureau of Investigation (CBI) will be conducted into the complaints of homeowners.
A group of homeowners has approached the court, alleging that banks are pressuring them to pay EMIs despite their not having received possession of their flats due to delays caused by builders and developers.
A member of the two-judge bench overseeing the case, Justice Surya Kant, remarked,
“We are not going to certify any institution as bad or good,”
He added,
“We will definitely have a CBI probe. That is clear. Thousands of people are crying. We can’t wipe their tears, but we can address their issues. Something very effective has to be done in a time-bound manner,”
In a landmark ruling in July 2024, the Supreme Court ordered that no coercive actions, including EMI recovery, should be taken against homebuyers in the National Capital Region (NCR) who have not received possession of their flats.
For many years, thousands of homebuyers across India have poured their life savings into housing projects, anticipating timely possession of their dream homes.
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Unfortunately, numerous developers have failed to fulfill their promises, leaving homeowners in both financial and emotional turmoil. In certain instances, builders have abandoned projects midway, misappropriated funds, or redirected money to other ventures, resulting in significant losses for buyers.
In their quest for justice, these homebuyers have engaged in legal battles, turning to courts and regulatory bodies such as the Real Estate Regulatory Authority (RERA). Although RERA has provided assistance in some cases, many builders have disregarded its orders or continued to delay projects, compelling buyers to seek recourse from the Supreme Court.
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The Supreme Court voiced significant concern regarding the situation, recognizing that thousands of individuals have been left vulnerable due to fraud and mismanagement. The court has suggested the possibility of a CBI investigation to examine widespread irregularities in the real estate sector.
The bench addressing the case pointed out that many individuals have faced financial devastation due to the unethical practices of developers. Furthermore, the court highlights the necessity for stricter regulations to prevent similar issues from arising in the future.
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