NCR builder-bank fraud: SC allows CBI to register 6 more FIRs

The Supreme Court on Tuesday allowed the CBI to register six more regular cases (RCs) to probe into the alleged unholy nexus between banks and builders to dupe homebuyers in real estate projects in Mumbai, Bengaluru, Kolkata, Mohali and Prayagraj.

A three-judge Bench led by Justice Surya Kant allowed the CBI to proceed as per law after Additional Solicitor General Aishwarya Bhati mentioned on behalf of the probe agency that it has completed preliminary enquiry (PE) in projects of the various builders, except Supertech Ltd, falling outside Delhi-NCR in Mumbai, Bengaluru, Kolkata, Mohali and Prayagraj.

The PE revealed commission of cognizable offences, Bhati said, adding the agency wanted to register six RCs and conduct search and seizure in the matter.

While allowing the CBI to go ahead with the registration of RCs, the Bench – which also included Justice Ujjal Bhuyan and Justice N Kotiswar Singh — asked the ASG to share relevant portions of the sealed cover CBI report with amicus curiae advocate Rajiv Jain.

Taking note of an "unholy nexus" between banks and builders resulting in duping of thousands of unsuspecting homebuyers in Delhi-NCR, the Supreme Court had on April 29 directed the CBI to register 7 PEs against Supertech Ltd and other builders.

On July 22, it had allowed the CBI to register 22 cases to probe the "unholy nexus" between banks and developers to dupe homebuyers in Delhi-NCR and had granted six weeks to the agency to complete the PEs with regard to projects outside the NCR.

The Bench is dealing with petitions filed by several homebuyers — who booked flats under subvention schemes in various housing projects in Noida, Greater Noida and Gurugram – and were allegedly forced by banks to pay EMIs despite not getting possession of flats.

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, as per the tripartite agreement, the banks sought EMIs from the homebuyers.

Earlier, taking note of a CBI report recommending registration of 7 PEs, the Bench had directed the UP and Haryana DGPs to give a list of DSPs, inspectors, constables to the agency to constitute a special investigation team (SIT) for the probe.

It had also ordered the CEOs/administrators of Greater Noida Authority, Noida Authority, secretary, Ministry of Housing and Urban Affairs, RERA (UP) and RERA (Haryana), the Institute of Chartered Accountants of India and the RBI to notify one nodal officer from among their senior-most officers to assist the SIT.

The Bench has been monitoring the progress of the probe on a monthly basis so that poor homebuyers "can be bailed out of the crisis".

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. Supertech Ltd alone had secured a loan amount of Rs 5,157.86 crore since 1998, he had submitted.