Go Unlimited with Magzter GOLD
Get unlimited access to 10,000+ magazines, newspapers and Premium stories for just
Try GOLD - Free
SC orders CBI to probe builder-banker nexus
Hindustan Times
|April 30, 2025
Apex court orders crackdown
The Supreme Court on Tuesday directed the Central Bureau of Investigation (CBI) to undertake a probe to unearth a possible nexus between builders and banks in sanctioning huge amounts under so-called subvention schemes without following any due diligence.
A bench headed by justice Surya Kant passed the order on a bunch of over 170 petitions filed by homebuyers who approached the court complaining that huge loans were disbursed by banks to the builders under the scheme even before construction of the underlying projects was complete. After builders/developers defaulted on getting the flats constructed, the banks demanded EMIS for recovering the loan amounts from the homebuyers.
Subvention schemes involve a tripartite agreement between the buyer, banker, and developer.
Under these, buyers typically pay between 5% and 20% up-front, while the bank loans the rest to the developer in instalments.
The developer pays the interest on a loan for a certain fixed period, usually two to four years, until the buyer takes possession.
The buyer starts paying back the loan in equated monthly instalments after this.
The petitions sought an investigation into the systematic failure of statutory and government authorities, and banks. The money was released to builders but the projects were never completed and banks then started pushing the buyers to pay back the loans for houses that had not been built.
This story is from the April 30, 2025 edition of Hindustan Times.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Hindustan Times
Hindustan Times
SC remarks may give a ray of hope to Umar Khalid
The Supreme Court's critical observation on the denial of bail to Jawaharlal Nehru University (JNU) scholar and Delhi riots accused Umar Khalid could brighten his prospects of challenging the decision against him by filing a curative petition, a member of Khalid’s legal team said.
1 mins
May 19, 2026
Hindustan Times
India, Norway elevate ties to green strategic partnership
India and Norway on Monday elevated bilateral ties to a green strategic partnership and signed agreements on health, space, digitalisation and ocean energy, as Prime Minister Narendra Modi and his Norwegian counterpart Jonas Gahr Store underscored the importance of trusted partnerships amid growing geopolitical instability, protectionism and economic uncertainty.
3 mins
May 19, 2026
Hindustan Times Delhi
DERC kicks off process for intensive audit of power discoms in the Capital
The Delhi Electricity Regulatory Commission (DERC) has floated a tender to appoint a Comptroller and Auditor General (CAG)-empanelled chartered accountancy (CA) firm to audit power discoms in the Capital, officials said.
1 mins
May 19, 2026
Hindustan Times
Pak to restore original names of Lahore streets
Pakistan's Punjab government has approved a plan to restore the names of several streets and roads in Lahore, aiming to revive the city’s pre-Partition heritage, an official said on Monday.
1 min
May 19, 2026
Hindustan Times
SC criticises own order denying bail to Umar
The Supreme Court on Monday criticised its own January 5 judgment denying bail to former JNU student Umar Khalid and activist Sharjeel Imam in the alleged larger conspiracy case linked to the 2020 Delhi riots, and emphatically held that “bail is the rule and jail is an exception” even in prosecutions under the Unlawful Activities (Prevention) Act (UAPA).
5 mins
May 19, 2026
Hindustan Times
MP woman’s husband denied pre-arrest bail
A local court on Monday rejected the anticipatory bail plea of the absconding lawyer-husband of the 32-year-old former model and actress, who was found dead at her Bhopal residence on May 12, even as the Madhya Pradesh police moved a Bhopal district court seeking directions on handing over the victim’s body after her parents refused to claim it, demanding that a fresh post-mortem examination be conducted at AIIMS Delhi.
3 mins
May 19, 2026
Hindustan Times Delhi
TANKERS ENTERING HORMUZ DURING WAR ARE MAKING THEIR WAY OUT
Almost all large non-Iranian tankers that have entered the Persian Gulf during the war appear to have successfully exited with a cargo, underscoring the emergence of a small group of shipowners willing to risk crossing the Strait of Hormuz.
1 min
May 19, 2026
Hindustan Times
Planned attacks on Iran called off amid talks: Trump
US President Donald Trump late on Monday said he was holding off on a planned military attack on Iran scheduled for Tuesday at the request of Gulf allies, while efforts continue to reach a deal, adding that the country was ready to resume attacking if one is not reached.
3 mins
May 19, 2026
Hindustan Times Delhi
2022 case: 'Shoot and scoot' violence cannot be called a protest, says HC
Violence in the form of “shoot and scoot” actions cannot be recognised as a legitimate mode of protest under any tenet of demosprudence, the Delhi High Court has held, while expressing concern over a section of society reportedly indulging in disruptive activities under the guise of protest.
1 mins
May 19, 2026
Hindustan Times
Hindus allowed daily access to Bhojshala
The Archaeological Survey of India (ASI) has allowed Hindu devotees unrestricted daily worshipping rights at the Bhojshala complex in Madhya Pradesh’s Dhar district, after the Indore bench of the Madhya Pradesh high court declared the disputed site a a temple dedicated to goddess Vagdevi (Saraswati).
1 mins
May 19, 2026
Listen
Translate
Change font size