CBI Chargesheets: Builders & Banks Under Investigation
The Supreme Court of India has recently directed trial courts to take prompt action on chargesheets filed by the Central Bureau of Investigation (CBI) in three out of 28 cases involving alleged collusion between builders and banks. This investigation was initiated in response to complaints from over 1,200 homebuyers in the National Capital Region (NCR), particularly in areas like Noida, Greater Noida, and Gurgaon. These homebuyers claimed they were coerced by banks to pay EMIs for properties they had not yet received possession of.
The CBI reported that it has completed its investigation regarding three cases and has filed charges against builder companies and their directors. The Supreme Court had previously found a prima facie connection between prominent banks and builders in executing projects in the NCR. This led to a series of directives from the court, emphasizing the importance of holding accountable those who exploit homebuyers.
On July 22, 2025, further directions were issued, leading to the registration of 22 regular cases on July 28. The CBI conducted searches at various locations linked to the accused individuals as part of this investigation. Despite the progress in some cases, the agency noted that 25 other cases are still under active investigation, indicating the complexity and scale of the issue.
During the proceedings, Additional Solicitor General Aishwarya Bhati informed the bench that officers had been deputed from the Uttar Pradesh and Haryana police to assist in the investigation. The court acknowledged a comprehensive status report compiled by Amicus Curiae advocate Rajiv Jain, which highlighted the unfair treatment of homebuyers and landowners.
The bench directed that this report be shared with the CBI to aid in reaching a logical conclusion in the ongoing investigations. The court is also open to considering additional petitions from other homebuyers who wish to be included in the proceedings, demonstrating a proactive approach to ensure justice for affected individuals.
This development is significant not just for the immediate parties involved but also for the broader real estate sector in India, where issues of transparency and fairness have often been a concern. The ongoing scrutiny by the Supreme Court and the CBI serves as a reminder of the importance of safeguarding the rights of homebuyers and ensuring accountability among builders and financial institutions.
