Builder-bank nexus: Yeida, Gr Noida give data to CBI

SUBVENTION SCHEMES INVOLVE A TRIPARTITE AGREEMENT BETWEEN THE BUYER, BANKER, AND DEVELOPER

- Vinod Rajput

NOIDA: The Noida, Greater Noida, and Yamuna Expressway authorities have begun preparing and handing over documents to the Central Bureau of Investigation (CBI) in connection with a Supreme Court-ordered probe into alleged collusion between real estate developers and banks in so-called subvention schemes.

The apex court, on April 29, directed CBI to undertake a probe to unearth a possible nexus between builders and banks in sanctioning huge amounts under the scheme without following any due diligence.

Following the apex court's directive, the authorities have identified 24 housing projects—11 in Greater Noida, nine in Noida, and four in Yamuna City—that are under scrutiny.

These schemes were initially promoted by builders, promising to pay EMIs on home loans until possession was handed over. But many builders defaulted, and the projects were either stalled or abandoned, leaving buyers saddled with debt and no homes.

The court's intervention came after receiving over 170 petitions from more than 1,200 homebuyers across the country.