New Delhi: The Supreme Court on Tuesday directed the Central Bureau of Investigation (CBI) to initiate seven preliminary enquiries into builders across the National Capital Region, including Supertech Limited, after observing a “unholy nexus” between financial institutions and real estate developers that allegedly defrauded homebuyers.
A bench comprising Justices Surya Kant and N Kotiswar Singh examined an affidavit submitted by the CBI and found enough material to suggest a prima facie connection between major banks and builders operating in cities such as Noida, Greater Noida, Gurugram, Yamuna Expressway, Mohali, Mumbai, Kolkata, and Allahabad.
The court instructed the Directors General of Police of Uttar Pradesh and Haryana to provide names of deputy superintendents of police, inspectors, and constables to assist in forming a Special Investigation Team (SIT). The SIT, to be constituted under CBI’s supervision, will handle the inquiries.
Additionally, the bench mandated top officials from the Ministry of Housing and Urban Affairs, Greater Noida Authority, Noida Authority, the Reserve Bank of India, and the Institute of Chartered Accountants of India to each appoint a senior nodal officer within a week. These officers will be responsible for coordinating with the investigation team.
Advocate Rajiv Jain, acting as amicus curiae, stated in court, “Supertech is the main culprit in cheating homebuyers.” He also pointed to Corporation Bank, which allegedly disbursed over Rs 2,700 crore to developers under subvention schemes, bypassing standard due diligence.
According to submissions made before the court, Supertech had partnered with 19 banks for 21 real estate projects spread across six cities, impacting around 800 buyers. The amicus report revealed that the builder had received loans totalling Rs 5,157.86 crore since 1998.
A key concern raised was the misuse of subvention schemes, wherein banks released loan amounts directly to developers, who were expected to pay EMIs until the flats were handed over. However, after defaulting on payments, the liability reportedly shifted to the buyers under the tripartite agreements.
The court had previously remarked that such schemes had affected thousands, with banks disbursing between 60 per cent to 70 per cent of home loan amounts without project completion. The bench also confirmed it would monitor the CBI’s progress with monthly status reports.
The case stems from petitions filed by over 1,200 homebuyers, who alleged coercion by banks to repay loans despite not receiving possession of their homes.