Supreme Court talks of CBI probe into homeowners' grievances, raises concern: ‘Thousands of people are crying…’

In a major relief for homebuyers awaiting possession of their flats in the National Capital Region (NCR), the Supreme Court last year prohibited banks, financial institutions, and builders from taking coercive action over EMI payments (Representative Image)

Expressing concern over the alleged ties between banks and builders, the Supreme Court has assured a Central Bureau of Investigation (CBI) probe into homeowners' complaints.

Several homeowners approached the court claiming they were being forced by banks to pay EMIs even though they have not received possession of their flats due to delays on part of builders and developers.

“We are not going to certify any institution as bad or good,” said Justice Surya Kant, who was heading the two-judge bench hearing the matter.

“We will definitely have CBI probe. That is clear. Thousands of people are crying. We can't wipe their tears but we can address their issues. Something very effective has to be done in time bound manner,” he was quoted as saying by Live Law.

In a major relief for homebuyers awaiting possession of their flats in the National Capital Region (NCR), the Supreme Court last year prohibited banks, financial institutions, and builders from taking coercive action over EMI payments. The court also stated that no cheque bounce cases will be entertained against affected homebuyers.

The top court was hearing a batch of pleas against an order of the Delhi High Court which had dismissed petitions by several homebuyers seeking directions to banks and financial institutions to not charge EMI till the real estate developers have delivered the possession of their flats.

Seven months after the top court’s order, it is still to be implemented. According to several homeowners, the loan amounts were illegally disbursed directly into the accounts of the builders/developers in violation of RBI guidelines, NDTV reported.

There are claims that homebuyers were exploited to obtain loan approvals. When these buyers objected, banks allegedly responded by taking action against them.

“We may not certify a single bank free from doubt...we have seen their functioning... you see the conduct of public institutions,” Justice Kant said.

Recognising the large number of similar cases, the court decided to appoint an amicus curiae. The next hearing is set for two weeks later.

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