Supreme Court allows CBI to register 6 more cases against real estate developers for duping homebuyers

New Delhi: The Supreme Court on Tuesday allowed the CBI to register six more regular cases for duping of homebuyers, in connection with the "unholy nexus" between banks and developers in real estate projects in Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj.

Additional solicitor general Aishwarya Bhati, representing the central agency, mentioned before a bench of Justices Surya Kant, Ujjal Bhuyan and N Kotiswar Singh that the agency has completed preliminary inquiry in projects of various builders except Supertech Ltd, falling outside Delhi-NCR in Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj.

The CBI contended that after preliminary inquiry, it has been found that a cognisable offence was made out.

She submitted that for speedy investigation in the matter, the agency is inclined to register six cases, and it would also conduct a search and seizure.

After hearing her submissions, the bench allowed the CBI to proceed as per the law and register regular cases. The bench asked Bhati to share portions of the sealed cover report with amicus curiae advocate Rajiv Jain.

On July 22, the apex court allowed the CBI to file 22 cases in connection with the "unholy nexus" between the banks and developers to dupe homebuyers in the national capital region (NCR). The builders in NCR and development authorities in Uttar Pradesh and Haryana are now under the apex court’s scanner.

The court appreciated CBI’s efforts in taking up the matter and examining over 1,000 persons, visiting 58 project sites. It asked the central agency to expeditiously conclude the investigation and take the matter to its logical conclusion.

The court allowed the CBI to convert the six preliminary enquiries it conducted against various builders and banks into 22 regular cases equivalent to FIRs in which cognisable offences are made for further investigation.

The bench said that the investigation in the seventh preliminary enquiry (PE) registered by the CBI is still ongoing. The bench noted that the projects in this PE are in Mumbai, Bangalore, Kolkata, Mohali, and Allahabad.

The apex court in March had permitted the CBI to register five PEs into affairs of builders and projects in the NCR region that is Noida, Greater Noida, Gurugram, Yamuna Expressway, and Ghaziabad. The bench allowed one PE to be registered against reality major Supertech Ltd against whom 799 homebuyers have moved the apex court by way of 84 appeals involving projects in eight different cities.