‘Time to expose the nexus’: Supreme Court pushes for CBI probe into builder-bank collusion in NCR

On Tuesday, Additional Solicitor General Aishwarya Bhati — appearing for the CBI –- told a bench of Justices Surya Kant and N K Singh that she had taken up the matter with the Ministry of Housing and Urban Affairs and CBI. She said that the court may direct a CBI probe if the court desires, but added that the task would be voluminous and that the agency will require officers on deputation to carry out the task.
Bhati said that the agency can be asked to start with one or two projects in Greater Noida, where the problem is mostly prevailing.
Justice Kant asked Bhati to propose how the “mess” can “really be gone into”.

Mooting an inquiry on a pilot basis, the court assured that it would provide whatever assistance that the agency may require to fulfill the task.

Appearing for a financial institution, senior advocate A M Singhvi said that the lender could not be held responsible if the builder went into the Corporate Insolvency Resolution Process.

Justice Kant, however, said that the financial institutions could not wash off their responsibility given that a major chunk of the money had been released upfront in some cases even before a single brick had been laid and this could not have happened without quid pro quo.

“Your fault is that knowing very well that not even a brick has been laid at the site, you are releasing 60%, 70%, 80%… is it possible without any quid pro quo? How can we accept that the officers’ hands are clean?” he said.

The Judge added, “We will not certify a single bank free from doubt… we have seen their functioning… not the first time we are watching them…”

The SC also appointed Advocate Rajiv Jain as Amicus Curiae to assist it in the matter.

In its order, the court said, “We have impressed upon Additional Solicitor General Aishwarya Bhati to discuss with CBI officers and put up a proposal as to how they would like to proceed with the inquiry/investigation into the issues that are briefly noticed in our order dated March 4, 2025, and prior thereto. She assures that such a proposal shall be put up before the court within two weeks.”