Supreme Court allows CBI to probe six new cases of bank-developer fraud affecting homebuyers in multiple Indian cities.

The Supreme Court has allowed the CBI to register six new cases probing alleged collusion between banks and real estate developers that defrauded homebuyers in Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj. The move follows a preliminary inquiry finding sufficient evidence of criminal wrongdoing, excluding Supertech Ltd, which is under separate scrutiny. The court directed the CBI to share parts of its sealed report with amicus curiae Rajiv Jain. The investigation focuses on the subvention scheme, where banks paid EMIs to builders, but defaults led to homebuyers being pursued despite no possession. Over 1,200 buyers have filed petitions, and the court has highlighted a nationwide pattern of fraud involving developers, banks, and authorities. The CBI is now authorized to conduct searches and seizures. This expands earlier approvals for 22 cases in Delhi-NCR and underscores the judiciary’s push for accountability in India’s housing sector.