Supreme Court Probes Real Estate Scam: The Unholy Nexus Revealed

The Supreme Court on Tuesday authorized the Central Bureau of Investigation (CBI) to launch six additional cases probing the 'unholy nexus' between banks and developers. This alleged conspiracy is said to have deceived homebuyers in real estate projects across major cities like Mumbai, Bengaluru, and Kolkata among others.

A bench of Justices, including Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh, has agreed to the CBI's request, following preliminary findings of a cognizable offense. This comes after further evidence suggested a deliberate scheme where developers defaulted on EMIs, impacting homebuyers.

This investigation is part of a broader inquiry into 22 cases involving builders and banks, accused of manipulating subvention schemes. Under these schemes, banks advanced loans to builders, later demanding EMIs from buyers when developers defaulted. The Supreme Court is addressing complaints from over 1,200 homebuyers affected by these practices.

(With inputs from agencies.)