Supreme Court Orders CBI Probe into Supertech Projects and Builder-Bank Nexus in NCR
The Supreme Court has directed the Central Bureau of Investigation (CBI) to initiate a preliminary inquiry into the projects of real estate giant Supertech Limited in the National Capital Region (NCR). This decision follows concerns about an alleged "unholy" nexus between developers and banks that has left thousands of homebuyers stranded.
The case revolves around the subvention scheme, under which banks were financing 60 to 70 percent of home loans for buyers, with the expectation that builders would complete their projects within a stipulated time frame. However, in many instances, developers failed to meet deadlines, leaving homebuyers with no possession of their flats while still being compelled to pay Equated Monthly Installments (EMIs) on loans.
During the proceedings, the Supreme Court highlighted the impact of the builder-bank nexus on homebuyers in NCR, particularly in Noida, Greater Noida, and Gurugram. The court noted that many homebuyers had been left in a difficult position, with their financial commitments growing while they had no possession of the properties they had purchased under the subvention scheme.
In response to these issues, the court has directed the CBI to initiate a comprehensive investigation. It has instructed the Director Generals of Police (DGP) from Uttar Pradesh and Haryana to provide a list of senior officers to assist in the formation of a Special Investigation Team (SIT). This team will be responsible for probing the matter and ensuring justice for the affected homebuyers.
Additionally, the Supreme Court has ordered the CEOs and administrators of the Greater Noida Authority, Noida Authority, and the Ministry of Housing and Urban Affairs to appoint senior officers to act as nodal points for the SIT. This collaboration is expected to streamline the investigation and ensure that all necessary resources are made available for a thorough inquiry into the allegations.
The court’s decision came after it had earlier directed the CBI to submit a roadmap for investigating the builder-banks nexus. It emphasized the need to uncover the full scope of the issue, which has affected not only homebuyers but also the broader real estate and banking sectors. The court has expressed a desire to get to the root of the matter and ensure that such practices do not continue in the future.
With thousands of homebuyers in NCR still waiting for possession of their homes, the Supreme Court's order brings hope for resolution and accountability. The investigation is expected to look into the role of both developers and banks in these ongoing disputes, and the outcome may have broader implications for the real estate industry in India.
Image source-scobserver.in