SC Pulls Up CBI Over Delay in Builder - Bank Nexus Probe

The Supreme Court on Wednesday expressed strong displeasure over the pace of investigation by the Central Bureau of Investigation (CBI) into the alleged builder–bank nexus that reportedly duped thousands of homebuyers under controversial subvention schemes in Delhi-NCR and other cities .

A bench headed by Chief Justice Surya Kant , along with Justices Joymalya Bagchi and Vipul M Pancholi , warned that prolonging the probe would only intensify the suffering of flat buyers who have already endured years of uncertainty after investing in housing projects that remain incomplete.

The court was hearing a batch of petitions filed by over 1,200 homebuyers , with the lead plea moved by Himanshu Singh through advocate Akshay Srivastava . Many of the petitioners had booked flats in housing projects across Noida, Greater Noida and Gurugram under subvention plans but have yet to receive possession of their homes. Despite this, banks allegedly continued demanding loan instalments (EMIs) from buyers after builders defaulted on payments.

Under the subvention scheme , banks disburse the loan amount directly to developers, who are supposed to service the EMIs until the buyer receives possession. However, once builders stopped paying the instalments, banks shifted the liability to homebuyers under tripartite agreements.

During the hearing, the CBI suggested transferring some of the cases to state investigative agencies , citing logistical challenges. The court rejected the proposal and directed the agency to investigate all cases itself , converting preliminary enquiries into regular criminal cases .

“This court cannot wait indefinitely for the conclusion of the investigation,” the bench observed, adding that delays would only deepen the hardship of buyers allegedly cheated through collusion between builders, banks and financial institutions .

The court also noted with concern that bank officials were not being adequately investigated , despite allegations of complicity. It directed a senior CBI officer to file an affidavit detailing the progress of the probe and provide a tentative timeline for its completion.

If the agency faces manpower shortages, the bench suggested that it could seek assistance from state Economic Offences Wings through their Directors General of Police (DGPs) .

The court further directed all stakeholders including homebuyers, banks and developers to submit their claims and suggestions to amicus curiae Rajiv Jain , who will examine the submissions and present a consolidated report before the court.

Earlier proceedings in the case had already led to the registration of multiple cases across several cities , including Mumbai, Bengaluru, Kolkata, Mohali and Prayagraj , as part of a widening investigation into alleged real-estate fraud.