Realty sector welcomes SC order on 'builder-bank nexus'

The real estate sector has welcomed the Supreme Court's judgment ordering a Central Bureau of Investigation (CBI) probe into the "unholy nexus" between developers and financial institutions.

- BHAVINI MISHRA & GULVEEN AULAKH

In a petition to the apex court, over 1,200 homebuyers and borrowers had said they were being forced to pay monthly installments on flats that were not handed over.

G Hari Babu, president of the National Real Estate Development Council (Naredco), a self-regulatory body under the purview of the Ministry of Housing and Urban Affairs, said the judgment will pave the way for more transparency for homebuyers and put the onus of full accountability on developers as well as banks.

"The SC judgment is in favour of customers and we welcome it. We, as developers, are servicing the customer. We have to take responsibility for their investments in our projects and be accountable. Customers have all the right to question the builder. Banks also have the responsibility to monitor and track construction and not give out loans upfront. This judgment will ensure more transparency for home buyers," he told Business Standard.