'No one will be spared'; CBI should investigate whether there is unholy nexus between real estate developers and banks, says SC

NEW DELHI: The Supreme Court has stepped in to address the complaints of flat owners who claim that banks are pressuring them to pay rent for flats that have been completed but not handed over. The Court has directed the Central Bureau of Investigation (CBI) to investigate whether there is an unholy nexus between real estate developers and banks.

The Court instructed the CBI to clarify the approach for the investigation within two weeks. It also asked whether the probe would focus on individual projects or entire regions. The bench, led by Justices Surya Kant and N.K. Singh confirmed that a CBI inquiry will be conducted.

Former Intelligence Chief, Rajeev Jain, has been appointed as amicus curiae in the case. He remarked, "There will certainly be a CBI investigation into this matter. Thousands of people are in distress. While we may not be able to wipe their tears, we will address their concerns. It is crucial that decisive and timely action is taken."

The CBI investigation, which will delve into the ties between banks and the real estate sector, is expected to have a broad scope. Thousands of flat owners have filed petitions with the Supreme Court seeking justice.

One petition highlights how banks (wealthy individuals) lend money to real estate developers (another set of wealthy individuals), but the developers abandon the projects without fulfilling their obligations. The petition claims that the bank later accuses the property buyers of legal violations for paying money for unfinished properties.

Additionally, the Supreme Court questioned how banks are approving loans for projects that have yet to begin construction. While some banking institutions have opposed the CBI investigation, the Court made it clear that "no one will be spared."