Supreme Court Expresses Concern Over Builder-Banker Nexus In Delhi NCR Housing Case

In a significant development, the Supreme Court has taken a firm stand on the complaints raised by homebuyers in the Delhi NCR region.

Furthermore, the Court expressed grave concern over the alleged nexus between builders and banks, which has left thousands of homebuyers in distress.

In their petition, the homebuyers have accused builders of delayed possession of flats and banks of forcing them to continue paying EMIs without receiving possession.

In response, the Court has assured that it will investigate the matter thoroughly and, in a decisive move, has instructed the CBI to conduct a detailed inquiry.

Court’s Stance & CBI Investigation

A bench led by Justice Suryakant has emphasized that the Court will not shy away from pursuing a deep investigation into the builder-bank collaboration.

The bench has already appointed an amicus curiae to assist the Court in determining how to proceed with the case.

Justice Suryakant made a bold remark, stating, “We will definitely ask for a CBI investigation. Thousands of people are suffering. We will ask the CBI to file a report. We will go to the depths of this matter. Our zero-tolerance approach on this issue will ensure that even if the culprits try to hide, we will find them.”

Builder & Bank Accountability

The Court has previously scolded both builders and banks for their alleged role in exploiting homebuyers.

It remarked that both parties had effectively held the homebuyers hostage by delaying possession of flats while continuing to charge them EMIs.

The Court noted that homebuyers had invested their hard-earned money, only to find themselves caught between builders and banks, with no recourse to justice.

To address these concerns, the Supreme Court called for the creation of a Special Investigation Team (SIT) to probe the alleged nexus between builders and banks.

The SIT is likely to provide a detailed report on its findings, which will aid in further proceedings.

Allegations & Petition Details

The petition filed by homebuyers alleges that builders delayed possession of flats and later, despite non-delivery, banks forced them to pay EMIs.

The petitioners also claimed that the distribution of loan amounts violated RBI guidelines, as funds were allegedly disbursed directly into the builders’ accounts, bypassing the homebuyers.

The petition further alleges that homebuyers were used as intermediaries to facilitate the loan transfer from banks to builders.

The Delhi High Court dismissed the case on March 14, 2023, prompting the homebuyers to appeal to the Supreme Court for justice and proper compensation.

The Supreme Court’s intervention has brought renewed hope to thousands of homebuyers who have long been waiting for justice.

The Court’s strong commitment to investigating the builder-bank nexus, ensuring proper compensation, and holding the responsible parties accountable signals a positive turn in this ongoing battle for fairness and justice.

As the CBI investigates the matter, homebuyers await relief from the long-standing issues that have impacted their lives and investments.

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