Supreme Court Directs CBI To Conduct Inquiry Into Alleged ‘Builder-Bank Nexus’ News24 –

Directing the Central Bureau of Investigation to register and conduct multiple preliminary inquiries into an alleged “builder-bank nexus”,  the Supreme Court on Tuesday gave an order on a plea filed by a large number of homebuyers who claimed they were forced to pay EMIs despite not receiving possession of their flats due to delays by developers.

SC asked CBI to conduct preliminary inquiries

A bench of Justices Surya Kant and N. Kotiswar Singh ordered the central investigation agency to conduct preliminary inquiries in relation to the projects launched by M/s Supertech limited in Delhi NCR region and to conduct the same over projects by other builders outside Delhi NCR region.

Homebuyers raised issues regarding the subvention scheme

Homebuyers also highlighted issues regarding the subvention scheme, under which banks sanction loans to homebuyers, but the EMIs against those loans are to be paid by the builders as per a tripartite agreement. However, when builders defaulted on these payments, banks initiated recovery proceedings against the homebuyers, the homebuyers have alleged.