CBI files 22 cases in builder-bank probe

Developers under CBI radar

- HT Correspondent

The Central Bureau of Investigation (CBI) has lodged 22 first information reports (FIRs) to investigate a possible “unholy” nexus between builders and banks in sanctioning huge amounts under so-called subvention schemes without following due diligence, and carried out raids at 47 locations in the national capital region (NCR), officials said Wednesday.

The cases name over a dozen developers, including Supertech Limited, Logix City Developers Pvt. Ltd, Jaypee Infratech Ltd, Jaypee Sports International Limited, according to the FIRs registered on July 28, seen by HT.

The development comes following an April directive of the Supreme Court. The court had issued the order on a bunch of over 170 petitions filed by homebuyers who alleged that huge loans were disbursed by banks to the builders under a scheme even before construction of the projects was completed. After builders/developers defaulted on getting the flats constructed, the banks demanded equated monthly instalments (EMIs) for recovering the loan amounts from the homebuyers.