SC orders CBI probe into builder-bank nexus in Delhi-NCR region
What's the story
The Supreme Court of India has asked the Central Bureau of Investigation (CBI) to probe alleged collusion between top real estate developers and banks in the NCR. The direction came during a hearing on homebuyers who had booked flats under subvention schemes in NCR, especially Noida, Greater Noida, and Gurugram. Buyers alleged that banks were pressuring them to start paying EMIs even though they hadn't been given possession of their homes.
Investigative focus
CBI to investigate Supertech and other builders
The SC has directed the CBI to initiate seven preliminary inquiries into this alleged "unholy" nexus. The first will be against Supertech Limited, a top developer already being investigated for several violations. The second will go beyond Delhi and examine projects by other builders in neighboring areas, including Noida, Greater Noida, Yamuna Expressway, Gurugram, and Ghaziabad.
Court's observation
Supreme Court highlights plight of homebuyers
The SC said many builders and banks have "taken poor homebuyers to ransom," leading to much suffering. "Homebuyers are made to cry," it said. It found the situation unacceptable, directing an independent probe to "unearth the truth." This comes on the heels of a proposal by the CBI itself, which contended preliminary probes were needed to ascertain builders' intentions and methods in collusion with financial institutions.
Additional instructions
Supreme Court directs police chiefs to assist CBI
Apart from the CBI probe, the SC has asked Uttar Pradesh and Haryana directors-general of police (DGPs) to pick officers who will assist the CBI. The agency is likely to create a Special Investigation Team (SIT) consisting of its own officials, selected state police officers, and subject-matter experts. Nodal officers will also be appointed by institutions like the Reserve Bank of India and relevant development authorities to aid this investigation.