On Tuesday, the Supreme Court instructed the CBI (Central Bureau of Investigation) to launch seven preliminary investigations into suspected improper ties, alias 'unholy' nexus, between real estate companies and banks in Delhi and the surrounding NCR region. This decision was made by a bench consisting of Justices Surya Kant and N Kotiswar Singh, who were hearing petitions from several homebuyers. These buyers had purchased flats under subvention schemes in areas like Noida, Greater Noida, and Gurugram and complained that banks were forcing them to pay EMIs even though they hadn’t yet received possession of their homes.

The first CBI investigation will look into Supertech Limited, a well-known builder already facing scrutiny for previous violations. The second will broaden the scope to include other builders operating in areas such as Noida, Greater Noida, Yamuna Expressway, Gurugram, and Ghaziabad.

The Supreme Court criticised the troubling alliance between specific builders and banks, stating that they had "taken poor homebuyers to ransom" and were causing significant suffering. The bench remarked that "homebuyers are made to cry," highlighting the severity of the issue. Summoning the situation inappropriate, the court stressed the need for an independent probe to "unearth the truth".

The court's decision comes after a request from the CBI, which said that initial investigations were necessary to uncover the builders’ intent and how they may have worked with financial institutions.

The Supreme Court has also asked the police chiefs of Uttar Pradesh and Haryana to pick officers who will work with the CBI. A Special Investigation Team (SIT) will be formed, made up of CBI officials, selected state police officers, and experts in the field.

Additionally, key institutions like the Reserve Bank of India and relevant local development authorities will appoint nodal officers to support the probe.