Supreme Court Approves CBI to Register Six More Real Estate Fraud Cases
The Supreme Court has approved the CBI to register six more regular cases into real estate fraud involving banks and developers in Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj. This move follows the earlier approval of 22 cases in the Delhi-NCR region.
Real EstateFraudCbiSupreme CourtHomebuyersReal Estate NewsSep 23, 2025
A bench of Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh allowed the CBI to proceed as per law after Additional Solicitor General Aishwarya Bhati, appearing for the agency, mentioned that it has completed preliminary inquiry in projects of various builders except Supertech Ltd, falling outside Delhi-NCR in Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj.
The bench noted the submission of the Central Bureau of Investigation (CBI) that, after preliminary inquiry, it has found a cognisable offence being made out and allowed the agency to register regular cases and proceed according to law. Bhati said the agency is willing to register six regular cases for speedy investigation and conduct a search and seizure in the matter.
The top court directed Bhati to share portions of the sealed cover report with the amicus curiae advocate Rajiv Jain. The bench on July 22, while allowing the agency to register 22 cases to probe the 'unholy nexus' between banks and developers to dupe homebuyers in Delhi-NCR, has granted six weeks to the CBI to complete the preliminary inquiry for projects outside the national capital region (NCR).
The 22 cases pertained to builders operating in NCR and development authorities in Uttar Pradesh and Haryana. Under the subvention scheme, banks disburse the sanctioned amount directly to the accounts of builders, who are then required to pay EMIs on the sanctioned loan amount until flats are handed over to homebuyers.
After builders started defaulting on EMIs to banks, in line with the tripartite agreement, banks demanded the EMIs from homebuyers. The top court had at that time 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 in Mumbai, Bangalore, Kolkata, Mohali, and Prayagraj, was still underway.
The top court is hearing a batch of petitions filed by over 1,200 homebuyers, who booked flats under the subvention plans in various housing projects in NCR, 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 allowed the CBI to register five preliminary enquiries into affairs of builders and projects in Noida, Greater Noida, Gurugram, Yamuna Expressway, and Ghaziabad.
It allowed one preliminary enquiry to be registered against realty major Supertech Ltd, against whom 799 homebuyers have moved the top court by way of 84 appeals involving projects in eight different cities. On July 22, the top court had perused the report submitted by the CBI in a sealed cover, suggesting that after conducting preliminary enquiries into the cases to ascertain the commission of a cognisable offence on the part of the builders and financial institutions, 22 regular cases are required to be registered for further investigation.
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 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 Prayagraj.
The amicus curiae 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.
Frequently Asked Questions
What is the 'unholy nexus' mentioned in the cases?
The 'unholy nexus' refers to the alleged collusion between banks and real estate developers to defraud homebuyers. Developers were supposed to pay EMIs on behalf of homebuyers until the flats were handed over, but they defaulted, leaving homebuyers to pay the EMIs despite not receiving their flats.
How many cases has the CBI been allowed to register outside the NCR region?
The Supreme Court has allowed the CBI to register six more regular cases outside the NCR region, specifically in Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj.
What is the subvention scheme in the real estate sector?
The subvention scheme is a financing arrangement where banks disburse the loan amount directly to the real estate developers. The developers are then required to pay the EMIs on behalf of the homebuyers until the flats are handed over. If the developers default, the burden shifts to the homebuyers.
Why did the Supreme Court allow the CBI to register these cases?
The Supreme Court allowed the CBI to register these cases to investigate the alleged fraud and collusion between banks and developers, which has left many homebuyers in financial distress.
What role does the amicus curiae play in these cases?
The amicus curiae, or 'friend of the court,' provides independent advice and assistance to the court. In these cases, the amicus curiae has highlighted the extent of the fraud and the role of major players like Supertech Ltd and Corporation Bank.
Related News Articles
Real Estate Market Sees Gains Amid Positive Trend
Real Estate stocks rise as S&P BSE Realty Index gains 0.96% at 8117.27
Makers of 'Burj Khalifa' Enter Mumbai with Ultra-Luxury Villa Project
The real estate market in Maharashtra is set to witness a significant transformation with the launch of 'The Casa Venero,' an ultra-luxury villa project by the makers of the world-renowned Burj Khalifa.
Kanakapura Road: Bangalore's Emerging Eco-Friendly Real Estate Hub
Kanakapura Road in Bangalore is rapidly transforming into a sought-after real estate hotspot, with many residential projects emphasizing eco-friendly living. Green initiatives, landscaped gardens, and proximity to nature are key features attracting homebu
Maharashtra: Real Estate Sectors Anticipates Revolutionary Changes with New Government
The real estate sector in Maharashtra is buzzing with optimism as the newly formed government is expected to introduce transformative policies that could unlock significant growth and development in the industry.
Wakad and Wagholi in Pune Witness Significant Real Estate Price Growth
Pune's real estate market has seen impressive growth, with Wakad and Wagholi leading the way. Wakad, a prime area, recorded a 27% price increase, while the peripheral area of Wagholi saw a staggering 37% growth.
Hiranandani Group Makes Strategic Entry into Pune's Real Estate Market with Landmark Deal
The Hiranandani Group, one of India's leading real estate developers, has officially entered the vibrant real estate market of Pune by partnering with Krisala Developers on a significant 105-acre project.