New Delhi, Sep 23: The Supreme Court on Tuesday granted the Central Bureau of Investigation (CBI) permission to register six additional cases into alleged fraud by developers and banks defrauding 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 agency to proceed after Additional Solicitor General Aishwarya Bhati informed the court that preliminary inquiries had been completed for these projects, except for Supertech Ltd, which falls outside Delhi-NCR.
The bench noted that the CBI had identified prima facie cognisable offences and could now register regular cases, conduct searches, and carry out seizure operations as per law. Bhati was directed to share portions of the sealed report with the amicus curiae, advocate Rajiv Jain.
Earlier, on July 22, the Supreme Court had allowed the CBI to register 22 cases in Delhi-NCR to probe similar allegations of a nexus between banks and developers defrauding homebuyers. The six new cases extend the investigation to projects outside the national capital region.
The fraud revolves around the subvention scheme, under which banks disburse sanctioned amounts directly to builders, who are required to pay EMIs until possession of flats is handed to buyers. Defaults by builders on EMIs led banks to demand payments from homebuyers, triggering widespread complaints.
The court is hearing petitions filed by over 1,200 homebuyers, especially in Noida, Greater Noida, and Gurugram, alleging they were forced to pay EMIs despite not receiving possession of their flats.
Supertech Ltd has emerged as a central focus of the probe. According to the amicus curiae’s report, the company secured loans totaling Rs 5,157.86 crore since 1998, with Corporation Bank alone disbursing over Rs 2,700 crore under subvention schemes. The Supreme Court has flagged collusion between banks, builders, and development authorities, terming it an “unholy nexus” that cheated homebuyers across multiple cities.
The court had previously allowed preliminary inquiries into five NCR projects on March 29 and one preliminary enquiry against Supertech Ltd, involving 799 homebuyers and 84 appeals across eight cities. The ongoing investigations aim to uncover financial misconduct, hold culprits accountable, and protect homebuyers from further exploitation.