'Fraud' against NCR homebuyers: SC nod to CBI to register 6 more cases in builder-bank 'nexus'

New Delhi, Sep 23 (PTI) The Supreme Court on Tuesday allowed the CBI to register six more regular cases into the "unholy nexus" between banks and developers to dupe homebuyers in real estate projects in Mumbai, Bengaluru, Kolkata, Mohali and Prayagraj.

A bench of Justices Surya Kant, Ujjal Bhuyan and N Kotiswar Singh allowed the CBI to proceed as per law after Additional Solicitor General Aishwarya Bhati, appearing for the agency, mentioned that it has completed preliminary inquiry in projects of the various builders except Supertech Ltd, falling outside Delhi-NCR in Mumbai, Bengaluru, Kolkata, Mohali and Prayagraj.

The bench noted the submission of the Central Bureau of Investigation (CBI) that, after preliminary inquiry, it has found a cognisable offence being made out and allowed the agency to register regular cases and proceed according to law.

Bhati said the agency is willing to register six regular cases for speedy investigation and conduct a search and seizure in the matter.

The top court directed Bhati to share portions of the sealed cover report with the amicus curiae advocate Rajiv Jain.

The bench on July 22, while allowing the agency to register 22 cases to probe the "unholy nexus" between banks and developers to dupe homebuyers in Delhi-NCR, has granted six weeks to the CBI to complete the preliminary inquiry for projects outside the national capital region (NCR).

The 22 cases pertained to builders operating in NCR and development authorities in Uttar Pradesh and Haryana.

Under the subvention scheme, banks disburse the sanctioned amount directly to the accounts of builders, who are then required to pay EMIs on the sanctioned loan amount until flats are handed over to homebuyers.

After builders started defaulting on EMIs to banks, in line with the tripartite agreement, banks demanded the EMIs from homebuyers.

The top court had at that time noted that the investigation in the seventh preliminary enquiry registered by the CBI, which is over projects of the various builders except Supertech Ltd, falling outside NCR in Mumbai, Bangalore, Kolkata, Mohali and Prayagraj, was still underway.

The top court is hearing a batch of petitions filed by over 1,200 homebuyers, who booked flats under the subvention plans in various housing projects in NCR, especially Noida, Greater Noida and Gurugram, alleging they were being forced by banks to pay EMIs despite no possession of flats.

On March 29, the top court allowed the CBI to register five preliminary enquiries into affairs of builders and projects in Noida, Greater Noida, Gurugram, Yamuna Expressway and Ghaziabad.

It allowed one preliminary enquiry to be registered against realty major Supertech Ltd, against whom 799 homebuyers have moved the top court by way of 84 appeals involving projects in eight different cities.

On July 22, the top court had perused the report submitted by the CBI in a sealed cover, suggesting that after conducting preliminary enquiries into the cases to ascertain the commission of a cognisable offence on the part of the builders and financial institutions, 22 regular cases are required to be registered for further investigation.

On April 29, the top court directed the CBI to register seven preliminary enquiries against builders in NCR, including Supertech Limited.

Frowning upon the collusion of development authorities officials, banks, and builders to dupe home buyers, the top court said it has found a prima facie nexus between renowned banks and builders in Noida, Gurugram, Yamuna Expressway, Greater Noida, Mohali, Mumbai, Kolkata and Prayagraj.

The amicus curiae had called Supertech Ltd the "main culprit" in defrauding homebuyers, whereas Corporation Bank advanced more than Rs 2,700 crore to builders through subvention schemes.

The amicus curiae's report has revealed that Supertech Ltd alone had secured a loan amount of Rs 5,157.86 crore since 1998. PTI MNL RHL