SC orders CBI probe into builder-bank nexus in cities

Following grievances raised by homebuyers/borrowers, the Supreme Court on Tuesday directed the Central Bureau of Investigation to conduct preliminary enquiries into an "unholy" nexus of builders and banks in the National Capital Region. This is the matter where the Court earlier hinted at a CBI probe, noting that certain real estate companies, and banks which sanctioned loans to them for their projects in NCR, had taken poor homebuyers to ransom. The top court has ordered a CBI probe into an "unholy nexus" between builders and banks in projects in Delhi, the National Capital Region (NCR), Mumbai, Chandigarh, Mohali and Kolkata. 
During a hearing , a bench of Justices Surya Kant and N Kotiswar Singh, directed the CBI to register seven preliminary enquiries (PE) and set up a special investigation team (SIT). The directors general of police (DGPs) of Uttar Pradesh and Haryana have also been asked to provide police officers to the CBI to aid in the investigation. One of the preliminary enquiry is to probe Supertech projects and the role of banks that have loaned over ₹5,000 crore under the subvention scheme for its multiple housing projects. Meanwhile, another enquiry will be registered to look into the projects of builders that fall outside of the NCR range. The remaining five preliminary enquiries will investigate the role five government authorities namely Noida, Greater Noida, Yamuna Expressway Industrial authority, Gurugram authority, and Ghaziabad development authority. 
Additionally, the apex court also directed land development authorities, ministry of housing and urban affairs, RERA of UP and Haryana, and Reserve Bank of India (RBI), to appoint nodal officers who will provide all the information sought by the CBI.The Supreme Court noted that there are banks/non-banking financial companies (NBFCs) on the one hand and builders on the other and there is a "nexus" between them. Homebuyers' EMIs are being deducted on schedule without possession being provided. The bench noted Supertech has more than 21 projects in six cities, involving 19 financial institutions. A report by the amicus curiae, who is assisting the court in the case, said the "nexus" between Supertech and eight banks should be investigated on a priority basis and three others could be done at a later date. The Supreme Court has sought the first interim report within a month, indicating that the matter will be monitored on a monthly basis.