Unraveling the Builder-Bank Nexus: Supreme Court Orders CBI Investigation

The Supreme Court has directed the CBI to investigate the alleged 'builder-banks nexus' that has left thousands of NCR homebuyers in financial distress. The Court emphasized the widespread impact of the subvention scheme where banks prematurely disbursed loan amounts to builders. The CBI is tasked with a detailed investigation plan.

On Tuesday, the Supreme Court emphatically directed the Central Bureau of Investigation (CBI) to delineate a roadmap to investigate the controversial 'builder-banks nexus'. This alleged scheme has financially entrapped a significant number of homebuyers across the National Capital Region (NCR).

A bench comprising Justices Surya Kant and N Kotiswar Singh highlighted the plight of thousands ensnared by the subvention scheme. Under this scheme, banks disbursed major portions of home loans to builders before project completions, leading to undue financial pressure on homebuyers.

The bench appointed advocate Rajiv Jain as amicus curiae, leveraging his expertise in economic offenses, aiming to probe the root cause of the nexus deeply. The Court mandated the CBI, aided by financial experts, to launch an exhaustive investigation to address the growing concerns of affected citizens.

(With inputs from agencies.)