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The Supreme Court has directed a special CBI court in Delhi to take cognisance of three chargesheets filed in cases linked to the alleged nexus between real estate developers and banks under subvention schemes. The court asked the trial court to act within two weeks and begin proceedings. The bench also issued directions to ensure closer monitoring of the investigation, which covers multiple projects across NCR and other cities. The case involves claims by over 1,200 homebuyers who faced financial liability without receiving possession of their homes.
The Supreme Court has instructed a special CBI court in Delhi to take cognisance of three chargesheets submitted by the Central Bureau of Investigation in matters related to the alleged collusion between real estate developers and banks. The trial court has been asked to complete this exercise within two weeks and move ahead with the legal process. Advertisement
The bench, comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi, was informed that the CBI is currently investigating 25 cases connected to the misuse of subvention schemes. The agency conveyed that meaningful progress is expected in all these cases in the coming weeks.
The cases originate from complaints linked to subvention schemes where banks disbursed approved home loan amounts directly to developers, while builders were required to service EMIs until project completion. However, several developers defaulted on these payments, after which banks began recovering dues from homebuyers under tripartite agreements, despite delays or non-delivery of flats.
Affected buyers from Noida, Greater Noida, Gurugram and other parts of the National Capital Region approached the Supreme Court, alleging financial distress caused by this arrangement. More than 1,200 petitions were examined by the court, prompting it to allow a detailed CBI investigation into the role of both builders and lending institutions.
As part of the probe, the CBI has examined over 1,000 individuals and inspected 58 project sites. Earlier, six preliminary enquiries were converted into 22 regular cases. The investigation has since expanded beyond NCR to cover projects in Uttar Pradesh, Haryana, and cities such as Mumbai, Bengaluru, Kolkata, Mohali and Allahabad. A separate enquiry outside NCR continues.
The Supreme Court also directed the CBI to share copies of the chargesheets with the amicus curiae appointed in the matter. The amicus is expected to assist the court by monitoring the fairness and progress of the investigation. The bench further indicated that additional FIRs may be registered if fresh material emerges during the probe.
In addition, 23 banks and financial institutions involved in the matter have been directed to deposit INR 10 lakh each into a dedicated account maintained with Union Bank of India. The amount will be used to meet expenses related to the functioning of the amicus curiae's office.
Previous submissions before the court had highlighted preliminary findings suggesting irregular coordination between certain developers and banks. In some cases, while possession was eventually offered to buyers, disputes over loan liabilities and delays continued to remain unresolved, leading affected homebuyers to pursue legal remedies.
Source PTI
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