'Unholy builder-bank nexus': SC orders CBI probe into Supertech projects in NCR

NEW DELHI: Observing what it called an "unholy" nexus between banks and real estate developers, the Supreme Court on Tuesday directed the Central Bureau of Investigation (CBI) to initiate a preliminary inquiry into the projects of realty giant Supertech Limited across the National Capital Region (NCR).
A bench comprising Justices Surya Kant and N Kotiswar Singh considered an affidavit submitted by the CBI and instructed the Directors General of Police (DGPs) of Uttar Pradesh and Haryana to provide a list of deputy superintendents of police (DSPs), inspectors, and constables, according to news agency PTI.
These personnel will be assigned to form a special investigation team (SIT) under the CBI's supervision.
In addition, the court directed the CEOs or administrators of the Greater Noida Authority, Noida Authority, and the Secretary of the Ministry of Housing and Urban Affairs to each nominate a senior-most official to serve as a nodal officer for the SIT.
Similar directions were issued to the Institute of Chartered Accountants of India (ICAI) and the Reserve Bank of India (RBI). The designated officers must be named within a week to facilitate the SIT’s probe.
SC had in July last year protected homebuyers and directed that no coercive action be taken against them by banks or builders regarding payment of EMIs and no complaint shall be entertained against them for cheque bounce cases.
The aggrieved homebuyers said they were victims of illegal disbursal of loans by banks directly into the account of builders in violation of RBI guidelines, which are statutory in nature.
“This is a classic case where one rich man (bank/financial institution) gave money to another rich man (builder). The rich man who received the money (builder) ran away with it without fulfilling his obligations. The rich man who gave the money (bank/financial institution) disbursed it in violation of the law of the land. The poor man (homebuyer) is now made a victim and is pushed into litigation by the bank when he has not received a single rupee. And is deprived of his dream home,” one of the petitions said.