Supreme Court Targets Builders-Banks Nexus in Homebuyer Scandal

The Supreme Court directed the CBI to initiate inquiries into alleged collusions between banks and builders, notably Supertech Limited, suspected of defrauding homebuyers in NCR and other regions. The court has mandated the formation of a special investigation team and will oversee the investigations monthly.

In a significant legal development, the Supreme Court has instructed the Central Bureau of Investigation (CBI) to launch seven preliminary inquiries into alleged collusions between banks and real estate developers, including Supertech Limited, to deceive homebuyers.

The apex court identified a suspicious connection between reputed banks and developers across numerous locations such as NOIDA, Gurugram, and Greater Noida, among others. The formation of a Special Investigation Team (SIT) has been ordered, with cooperation required from senior officials across multiple authorities.

Significantly, the bench highlighted that the connection between Supertech and banks warrants immediate scrutiny due to substantial financial transactions uncovered. The case stems from numerous complaints by homebuyers over incomplete projects and mounting financial obligations.

(With inputs from agencies.)