EMI schemes: SC asks CBI to probe banker-builder nexus

CBI's first preliminary enquiry will focus on projects of bankrupt builder Supertech

- Krishna Yadav & Madhurima Nandy

India's top court on Tuesday ordered a federal probe into a suspected nexus between builders and bankers, in which buyers in projects that stalled later are being pursued by banks to pay loan installments that builders had promised to pay till the apartments were handed over to buyers.

The Supreme Court asked the Central Bureau of Investigation (CBI) to form a special investigation team (SIT) to examine the practice, starting with projects from bankrupt Supertech Ltd in the Delhi-National Capital Region (NCR). The order by a bench of Justices Surya Kant and N. Kotiswar Singh comes as some relief for homebuyers who had moved the court.

According to the court's directions, CBI's first preliminary enquiry (PE) will focus on projects developed by Supertech Ltd. Another will examine projects by other builders in Mumbai, Bengaluru, Kolkata, Mohali, and Allahabad. Additionally, five PEs will cover projects under the jurisdiction of regional development authorities in Noida, Greater Noida, Yamuna Expressway, Gurugram, and Ghaziabad.

Acknowledging the scale of the issue—particularly in Uttar Pradesh and Haryana—the court asked both state governments to nominate officers for deputation to the CBI.