On Tuesday, the Apex Court expressed serious concern over the exploitation of poor homebuyers in the National Capital Region (NCR) by real estate developers and banks, stating that they have been "taken to ransom."
The Court sought a response from the Central Bureau of Investigation (CBI) on conducting a probe into the alleged builder-bank nexus.
A bench of Justices Surya Kant and N Kotiswar Singh took strong exception to the lack of transparency from builders, interim resolution professionals, and banks regarding delayed housing projects and their construction status. The court emphasized the need for a Special Investigation Team (SIT) to uncover the alleged collusion that has led to financial distress for homebuyers who invested their life savings.
The matter concerns thousands of homebuyers who had booked flats under subvention plans, where banks directly disbursed sanctioned loan amounts to builders, who were then required to pay EMIs until the flats were handed over. However, as builders defaulted, banks turned to homebuyers for loan repayment, despite them not receiving possession of their properties.
Slamming the mismanagement, the court stated, “People invested their hard-earned money, but poor homebuyers have been taken to ransom. We will ask the CBI to register a case.” It also warned that interim resolution professionals involved in insolvency proceedings would not be spared if found complicit.
The Supreme Court had earlier provided relief to homebuyers, preventing banks and builders from taking coercive action over unpaid EMIs. However, petitioners argue that banks illegally disbursed loans directly to builders in violation of RBI guidelines, leaving homebuyers trapped in financial and legal turmoil.
The court will formulate specific questions for the CBI’s investigation in the next hearing, aiming to hold those responsible accountable and provide justice to aggrieved homebuyers.
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