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Informist, Wednesday, Mar. 11, 2026

 

NEW DELHI – The Supreme Court Wednesday asked the Central Bureau of Investigation to give an estimated timeline for completing the probe on real estate projects launched by Supertech Ltd. and other builders, observing that the court cannot wait for an indefinite period. Delay in probing real estate projects will lead to more agony for homebuyers who had already been harassed by the builders, said a bench led by Chief Justice of India Surya Kant.

 

Last year, the top court had ordered the probe agency to investigate projects to uncover the nexus between banks or financial institutions and builders-cum-developers, particularly in cases where homebuyers had paid substantial amounts, and the projects had not even been launched, or construction had not begun. The CBI had registered first information reports against Supertech and other builders in the case. 

 

The probe was ordered in a case where the apex court was hearing a batch of petitions from homebuyers about the disbursement of funds by banks to builders-cum-developers through subvention schemes for various housing development projects in the National Capital Region.

 

Through the subvention scheme, the builders-cum-developers advertised that they would pay the equated monthly instalment (EMI) or pre-EMI on the loans taken by the homebuyers to purchase units in their development projects, until a specified cut-off date or date of possession, depending on the terms of each tripartite agreement. As per these tripartite agreements, banks disbursed the majority of the loan amounts to the builders-cum-developers upfront.

 

In 2018 and 2019, when the builders-cum-developers defaulted on EMI payments, banks demanded payments from the homebuyers. The petitioners have said almost 70-80% of the loan amounts were disbursed by the banks to the builders-cum-developers as 'first tranche', despite project milestones not being achieved. The banks and financial institutions had violated several provisions of the 2013 Reserve Bank of India guidelines when disbursing the amounts, as the disbursals were made without any due diligence on the banks' part, said the petitioners.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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