NEW DELHI: The Supreme Court on Tuesday directed the CBI to register a preliminary enquiry and investigate the nexus between Supertech, a real estate developer, and eight other banks over delays in project completion and forcing homebuyers to pay EMIs.
The top court ordered that the Central Bureau of Investigation will probe the incomplete projects of the realty major Supertech Limited in the NCR — including Noida, Greater Noida, and Gurugram — where irregularities have been found.
The court observed that there appeared to be an “unholy” nexus between these eight banks and developers involved in these projects.
Taking into account an affidavit filed by the CBI in the case, a two-judge bench comprising Justice Surya Kant and Justice N. Kotiswar Singh directed the Directors General of Police (DGPs) of Uttar Pradesh and Haryana to provide a list of Deputy Superintendents of Police (DSPs), inspectors, and constables to the agency, enabling it to form a Special Investigation Team (SIT) to probe the alleged nexus and irregularities involving Supertech and the banks.
The court instructed that the CBI investigate the matter thoroughly and dig deeper to uncover the root of the "irregularities."
Further, the court ordered the CEOs of the Greater Noida Authority, Noida Authority, and the Secretary of the Institute of Chartered Accountants of India (ICAI), as well as officials from the Ministry of Housing and Urban Affairs and the Reserve Bank of India (RBI), to nominate one senior-most officer from their respective organizations within a week to assist the SIT in the investigation.
The Supreme Court issued this order for a detailed CBI probe after hearing a batch of petitions filed by several homebuyers. Reportedly, around 1,000 petitioners had approached the apex court, alleging that they were being “illegally” forced by banks to pay EMIs despite not receiving possession of their flats.
Taking note of these concerns, the court directed the CBI to conduct a comprehensive investigation.
The petitioners — who had booked flats in the NCR region — demanded a thorough probe into Supertech’s projects and the role of various banks that had loaned over ₹5,000 crore under the subvention scheme for its multiple housing developments.
According to the court order, the Supreme Court bench will monitor the status of the CBI investigation on a monthly basis.
It is important to note that a subvention scheme operates by having banks disburse the sanctioned loan amount directly to the builder’s account. During this period, the builder is required to pay the EMIs on the sanctioned loan until the flats are handed over to the homebuyers.
However, the builder eventually began defaulting on loan payments, and at the same time, banks started demanding EMIs from the homebuyers, as per the tripartite agreement.