The Supreme Court granted the Central Bureau of Investigation (CBI) the authority to register six additional cases related to an alleged collusion between financial institutions and real estate developers that allegedly defrauded homebuyers in the National Capital Region (NCR). This development comes as part of the ongoing scrutiny of subvention schemes that left buyers paying EMIs without possession of their flats.
The three-judge bench, comprising Justices Surya Kant, Ujjal Bhuyan, and N. K. Singh, approved the CBI’s request after Additional Solicitor General Aishwarya Bhati informed the court that preliminary inquiries covering projects outside the NCR had been completed. These preliminary investigations spanned Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj. Based on findings indicating a cognisable offence, the agency sought to expand the investigation to include six new cases.
The apex court’s order is an extension of its April 29, 2025, directive, in which it had asked the CBI to conduct seven preliminary inquiries against developers, including Supertech Limited, following petitions by over 1,200 homebuyers. These buyers alleged that banks forced them to pay EMIs under subvention schemes even though possession had not been granted. Under such schemes, banks pay the loan amount directly to developers, deferring the homebuyer’s EMIs until possession is delivered. Developers typically bear the interest cost during this period.
However, financial distress among developers led to a breakdown in the arrangement. With several developers defaulting on payments, banks reportedly began demanding EMIs from homebuyers despite non-possession, intensifying the legal and financial challenges for affected families.
During the hearing, the CBI highlighted that six preliminary inquiries had been concluded and 22 regular cases needed formal registration to proceed with full-scale investigation. The court accepted this request while noting that the seventh preliminary inquiry—covering builders other than Supertech Limited in cities such as Mumbai, Bengaluru, Kolkata, Mohali, and Allahabad—remains ongoing. The agency has been granted six weeks to complete this inquiry.
The Supreme Court emphasized that the new cases are crucial for addressing the systemic lapses in the execution of subvention schemes across NCR housing projects, particularly in Noida, Greater Noida, Yamuna Expressway, Gurgaon, and Ghaziabad. Allegations suggest that certain developers may have entered into arrangements with banks that prioritized financial flows over timely delivery to buyers, raising concerns of collusion and regulatory oversight failure.
The court’s directive is expected to accelerate the investigation, offering relief to homebuyers who have faced prolonged delays and financial uncertainty. Legal experts note that registration of these additional cases could also prompt greater accountability among developers and financial institutions operating under subvention schemes.
Homebuyers’ associations in NCR have welcomed the Supreme Court’s decision, emphasizing that systemic oversight is necessary to prevent repeated defaults and protect the interests of individuals investing in high-value residential projects.
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