Supreme Court seeks timeline for CBI probe into NCR housing projects

New Delhi: The Supreme Court on Wednesday asked the Central Bureau of Investigation (CBI) to provide an "estimated timeline" for completing its probe into several real estate projects by builders, including Supertech Ltd, in the National Capital Region (NCR).

The court said it cannot wait for an "indefinite period" and warned that delays would prolong the "agony of homebuyers who have already been harassed by builders and developers".

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A bench led by Chief Justice Surya Kant said the CBI had been entrusted with the investigation and there was no reason why the agency should not commence it expeditiously.

The CJI clarified that the court was not commenting on the quality or investigative skills of the agency but stressed that no one should be treated above the law.

"Investigation should reach a logical conclusion. Delay in prolonging the investigation will lead to agony of homebuyers who have already been harassed by the builders and developers," the bench said.

The apex court also said the CBI could seek assistance from local police if required. Directors General of Police in the concerned states would be obliged to provide police personnel within a week of receiving such a request, it added.

The CBI is probing projects by Supertech and the role of banks that have extended loans totalling ₹5,157.86 crore since 1998 under subvention schemes for housing projects in the NCR. The agency has also been asked to investigate the role of government authorities, including the New Okhla Industrial Development Authority, Greater Noida Industrial Development Authority and Yamuna Expressway Industrial Development Authority.

While hearing a separate batch of petitions by homebuyers in April last year, the Supreme Court had directed the CBI to register preliminary enquiries into real estate projects launched by several developers, including the Supertech group, to examine any nexus between banks or financial institutions and builders in projects where homebuyers had paid substantial amounts but the projects were either not launched or not delivered.

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Subsequently, the agency registered an FIR against Supertech and other builders in July, followed by multiple FIRs in related cases.

According to an amicus curiae report submitted in April, Supertech had more than 21 projects across six cities and had entered into tripartite agreements with 19 banks and housing finance companies. Around 800 homebuyers were reported to be aggrieved. The petitions filed by homebuyers relate to the disbursement of loans by banks to builders under subvention schemes for housing projects in the NCR. Under such schemes, banks disburse the sanctioned loan directly to builders, who are required to service the EMIs until possession of the flats is handed over to homebuyers. However, after developers defaulted on EMIs, banks in 2018 and 2019 began initiating recovery action against homebuyers even though they had not received possession of their flats. In several cases, projects were still under construction, incomplete, or had not even begun.