The Supreme Court directs the CBI to launch a criminal probe in a massive homebuyer scam, ordering cases against builders and banks involved in fraudulent activities across NCR.
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NEW DELHI: The Supreme Court of India has taken a strong stand against large-scale irregularities in the real estate sector by directing the Central Bureau of Investigation (CBI) to register criminal cases in a matter involving allegations of a builder-bank nexus and loan fraud affecting homebuyers across Noida, Greater Noida, Gurugram, Ghaziabad, and other regions. The case has raised serious concerns about systemic financial misconduct in the housing sector.
Background of the Case
The controversy stems from widespread complaints by over 1,200 homebuyers who alleged that developers colluded with financial institutions to exploit subvention loan schemes between 2013 and 2015. Under these schemes, buyers paid only a token amount, while banks released the bulk of the loan directly to builders. Many housing projects stalled by 2018–19, leaving homebuyers to continue repaying EMIs for properties they never received.
Earlier, the Supreme Court had ordered seven preliminary enquiries to examine the extent of the alleged nexus. The enquiries were conducted by the CBI, with oversight by amicus curiae Rajiv Jain, former Director of the Intelligence Bureau, who highlighted serious irregularities in the loan schemes.
Court Orders CBI Action
On Tuesday, the Bench of Justices Surya Kant, Ujjal Bhuyan, and NK Singh was informed that the seventh preliminary enquiry had revealed the commission of cognizable offences, prompting the Court to direct the CBI to move beyond the inquiry stage.
The Supreme Court explicitly instructed the CBI to:
- Take necessary legal steps, including registering First Information Reports (FIRs) where criminal conduct was established.
- Act swiftly to ensure justice for the affected homebuyers.
The order underscores the Court’s firm position that systemic financial fraud affecting thousands of citizens cannot remain unaddressed.
Role of the Special Investigation Team
The Court had earlier directed the formation of a Special Investigation Team (SIT) comprising officers from Uttar Pradesh and Haryana. The SIT was tasked with coordinating with:
- Reserve Bank of India (RBI)
- National Housing Bank (NHB)
- Relevant development authorities in the affected cities
Additionally, three forensic auditors appointed via the Institute of Chartered Accountants of India were brought on board to assist in the investigation, highlighting the multi-pronged approach adopted to ensure a thorough probe.
One of the seven enquiries specifically focused on Supertech, a builder involved in 21 projects across six cities, affecting 799 petitioners. Other enquiries covered housing projects in Noida, Greater Noida, Gurugram, Ghaziabad, along the Yamuna Expressway, and outside the NCR region.
Case Title:
Himanshu Singh vs. Union of India
Special Leave to Appeal (C) No(s).7649/2023
Read Order:
