SC Directs CBI to Probe New Complaints in Subvention Scheme Scam – Key Highlights
- CBI Investigation Mandate: The Supreme Court directed the CBI to examine new complaints filed by flat purchasers under subvention schemes and register cases wherever necessary after preliminary inquiries.
- Homebuyer Protection: The bench emphasized that delayed projects should not burden flat buyers, and developers must be held accountable for non-delivery of properties.
- Scope of Cases: The investigation covers 25 ongoing cases involving major real estate firms including Supertech, Vatika Group, Ajnara Group, Raheja Developers, Earthcon, Ozone Infra, and Mahagun Group across cities like Noida, Greater Noida, Sohna, Gurgaon, Chennai, and Bangalore.
- Procedural Oversight: The court highlighted concerns over mismanagement by interim resolution professionals and mandated that homebuyers and creditor committees (CoC) have a voice in stalled project matters to ensure fairness and accountability.
- Timelines & Reporting: The CBI must update the court within two weeks on progress, review submissions like the 700-page report by amicus curiae Rajiv Jain, and aim for substantial progress in all 25 cases by March 2026.
The Supreme Court called upon the Central Bureau of Investigation (CBI) to test a range of new complaints lodged by flat purchasers against builders in subvention schemes. It also ordered the CBI to register cases wherever necessary after making preliminary inquiries about the complaints.
These are part of a set of petitions being monitored by the top court for 25 cases already registered by the CBI against various banks, financial institutions, and real estate companies. Although investigations in three of these cases are completed with charge sheets already filed, the CBI has reportedly informed the court that these remaining cases were filed in compliance with orders dated July 22 and September 23 of last year.
A bench headed by Chief Justice of India (CJI) Surya Kant and comprising Justices Joymalya Bagchi and Vipul M. Pancholi observed that homebuyers had filed fresh petitions with evidence of housing projects where flat purchasers were stuck under subvention schemes, with banks seeking instalments despite builders failing to deliver the properties.
“Flat purchasers should not be forced to bear the brunt of delayed projects. The law must ensure they are protected and developers held accountable,” the bench said.
Several lawyers representing homebuyers, including Akshay Srivastava, highlighted that while the existing investigations cover realty firms such as Supertech, the new complaints include projects by other builders who may or may not yet be under CBI scrutiny.
The bench directed that:
- Soft copies of the complaints be handed over to Additional Solicitor General Aishwarya Bhati, representing the CBI.
- The CBI examine all matters and register new cases wherever required.
- Updated status reports be submitted to the court within two weeks.
The cases currently pending before the CBI include real estate projects in Noida, Greater Noida, Sohna, Gurgaon, Chennai, and Bangalore. The large companies being investigated include Supertech Ltd., Vatika Group, Ajnara Group, Raheja Developers Ltd., Earthcon Universal Ltd., Ozone Infra Projects Ltd., and Mahagun Group. ASG Bhati told the court that the agency hopes to make progress in all 25 cases by the end of March 2026.
The court also examined non-subvention matters related to distressed Supertech projects. In some cases, state-owned NBCC Ltd. has been appointed to complete stalled construction. For the Supertech Supernova project, the court formed a committee headed by a retired high court judge to oversee completion.
The bench expressed concerns about interim resolution professionals (IRPs) overseeing companies under insolvency, stating, “Reports about mismanagement and poor supervision by resolution professionals are alarming. Homebuyers cannot suffer due to administrative lapses.”
On procedural fairness, the court emphasized that homebuyers and committees of creditors (CoC) must have a voice in matters of stalled projects. “It is a matter of concern if homebuyers are left unheard. Their interests must be safeguarded,” the bench noted.
Regarding builders who have defrauded buyers, the court warned: “Those responsible for cheating homebuyers should be removed from the process. Accountability is non-negotiable.” The bench further added, “If anyone attempting to influence the process has links to the original developer, they will face legal consequences.”
The bench also ordered a moratorium on insolvency proceedings for the Supernova project and granted immunity to the empowered committee headed by Justice (retd) M.M. Kumar against pending litigation.
Advocate Rajiv Jain, acting as amicus curiae, submitted a 700-page report to the court outlining unfair practices by developers and banks. The bench directed that the CBI review the report and update the court on the progress within two weeks.
Image source- scobserver.in
