Institute of Legal and Management Studies

In the matter where the Supreme Court ordered a probe by the Central Bureau of Investigation into a builder-banks nexus exploiting homebuyers in the national capital region, the CBI was today allowed to proceed with registration of criminal cases qua projects outside NCR.

On a mentioning, a bench of Justices Surya Kant, Ujjal Bhuyan and N Kotiswar Singh allowed the CBI to register regular cases, after it was informed that the 7th preliminary enquiry was complete and disclosed commission of a cognizable offense.

To recap, this is the matter where the Court directed CBI to conduct 7 preliminary enquiries into the "unholy" nexus of builders and banks in NCR, noting that certain real estate companies, and banks which sanctioned loans to them for their projects in NCR, had taken poor homebuyers to ransom.

In July, CBI presented an interim report before the Court qua 6 PEs, suggesting further course of action and registration of 22 regular cases. The proposed action was allowed by the Court, while giving 6 weeks' more time to CBI to complete the preliminary enquiry being carried out with respect to projects outside NCR.

Today, Additional Solicitor General Aishwarya Bhati presented details of the 7th PE to the Court in sealed cover, suggesting registration of 6 regular cases. The ASG mentioned that similar order was passed earlier with respect to 6 other preliminary enquiries.

Hearing her, the Court ordered, "Ld. ASG, on instructions, informs that the preliminary enquiry by the CBI, in terms of the directions issued earlier, is complete and as per such enquiry, a cognizable offence is made out. That being so, the CBI will register the case under appropriate provisions of law and proceed to investigate the same. After completion of search and seizure, a copy of the criminal inquiry report be handed over to ld. Amicus to enable him to assist the Court".

Case Title: HIMANSHU SINGH AND ORS. Versus UNION OF INDIA AND ORS., SLP(C) No. 7649/2023 (and connected cases)