The Supreme Court on July 22 (Tuesday) allowed the Central Bureau of Investigation (CBI) to file 22 regular cases based on its findings into alleged irregularities involving banks and developers in the National Capital Region (NCR).
These cases stem from six preliminary enquiries conducted by the agency into various builders and financial institutions.
The court was hearing petitions filed by over 1,200 homebuyers who had invested in housing projects under subvention schemes across Noida, Greater Noida, and Gurugram.
Under these schemes, banks disburse loans directly to developers, who are responsible for paying EMIs until flats are handed over to buyers. After the builders defaulted, banks turned to the homebuyers to recover dues, under tripartite agreement.
The bench appreciated the efforts of the central probe agency in taking up the matter by understanding the gravity and magnitude of the issue and examining over 1,000 persons, visiting 58 project sites and asked it to expeditiously conclude the investigation and take the matter to its logical conclusion.
The top court noted that the investigation in the seventh preliminary enquiry registered by the CBI, which is over projects of the various builders except Supertech Ltd, falling outside NCR region in Mumbai, Bangalore, Kolkata, Mohali and Allahabad, was still underway.
It was hearing a batch of petitions filed by over 1,200 homebuyers, who booked flats under the subvention plans in various housing projects in NCR region especially Noida, Greater Noida and Gurugram, alleging they were being forced by banks to pay EMIs despite no possession of flats.
On March 29, the top court has allowed the CBI to register five preliminary enquiries into affairs of builders and projects in the NCR region that is Noida, Greater Noida, Gurugram, Yamuna Expressway and Ghaziabad.
It allowed one preliminary enquiry to be registered against reality major Supertech Ltd against whom 799 homebuyers have moved the top court by way of 84 appeals involving projects in eight different cities.
The top court on Tuesday perused the report submitted by the CBI in a sealed cover suggesting that after conducting preliminary enquiries into the cases to ascertain commission of cognisable offence on the part of the builders and financial institutions, 22 regular cases are required to be registered for further investigation.
"We accept the recommendation and the CBI shall accordingly register regular cases and proceed in accordance with law," the bench ordered, allowing the CBI to move court for further directions.
The bench granted six weeks to the agency for its investigation into the seventh preliminary enquiry over projects outside the NCR.
The top court directed Additional Solicitor General Aiswarya Bhati, appearing for the CBI, to share portions of the sealed cover report to the amicus curiae advocate Rajiv Jain as "deemed necessary".
It asked the CBI to examine the report filed by the amicus terming it an “eye opener” which also highlights the need for transparency in dealings of development authorities including RERA and measures for protecting the interest of home buyers from unscrupulous builders.
Referring to the amicus' report, the bench said some homebuyers, who are very few in numbers, were offered possession of their flats but they refused to take it and instead chose litigation.
"We will not entertain those home buyers, who are very few in numbers and would not allow them to misuse the platform of court. We will ask them to move to the appropriate forum and avail whatever legal remedy they have but not this court," the bench said.
The matter would be next heard in 10-15 days.
On April 29, the top court directed the CBI to register seven preliminary enquiries against builders in NCR, including Supertech Limited.
Frowning upon the collusion of development authorities officials, banks and builders to dupe the home buyers, the top court said it has found a prima facie nexus between renowned banks and builders in NOIDA, Gurugram, Yamuna Expressway, Greater Noida, Mohali, Mumbai, Kolkata and Allahabad.
Advocate Jain had called Supertech Ltd the "main culprit" in defrauding homebuyers whereas Corporation Bank advanced more than Rs 2,700 crore to builders through subvention schemes.
The amicus curiae’s report has revealed that Supertech Ltd alone had secured a loan amount of Rs 5,157.86 crore since 1998.
With inputs from PTI
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