The Supreme Court on September 23, 2025, allowed the Central Bureau of Investigation (CBI) to register six additional cases related to alleged collusion between banks and builders that defrauded homebuyers in multiple cities across India. A bench of Justices Surya Kant, Ujjal Bhuyan, and N. Kotiswar Singh gave the green light for investigations in cities including Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj.
Additional Solicitor General Aishwarya Bhati informed the court that the CBI had completed its seventh preliminary inquiry in the matter and found sufficient evidence to justify filing FIRs. The court also directed that portions of a sealed report be shared with amicus curiae Advocate Rajiv Jain to assist with further proceedings.
This development follows a previous order from July 22, when the Supreme Court had permitted the CBI to file 22 cases linked to similar frauds in the National Capital Region (NCR), covering Noida, Greater Noida, Gurugram, and parts of Uttar Pradesh and Haryana. At that time, the bench had also granted six weeks for preliminary inquiries into cases outside NCR.
The alleged fraud centers on “subvention schemes” in which banks disbursed funds directly to developers, who were supposed to pay EMIs on behalf of buyers until possession of flats was handed over. However, many developers defaulted on these payments, and banks began demanding EMIs from homebuyers who had still not received possession of their properties. More than 1,200 homebuyers approached the Supreme Court claiming they were forced to bear this financial burden.
Among the developers named in the probe is Supertech Ltd., identified by the amicus curiae report as a primary violator. Corporation Bank is said to have sanctioned over ₹2,700 crore in subvention loans under such schemes, while Supertech itself reportedly availed loans of around ₹5,157.86 crore since 1998. The apex court has noted a prima facie nexus involving developers, banks, and development authority officials across several cities, and has now authorized the CBI to carry the investigation forward.
The post Supreme Court allows CBI to file six more FIRs in builderbank homebuyer fraud case appeared first on India Legal.