Still paying EMIs without a flat? Here’s how SC’s latest order protects homebuyers like you

The Supreme Court on Tuesday ordered the Central Bureau of Investigation (CBI) to initiate seven preliminary inquiries into what it called an "unholy nexus" between real estate developers and banks in the Delhi-NCR region. The directive came during a hearing on petitions filed by homebuyers who alleged they were being forced to pay EMIs on flats they had never received possession of.

A bench of Justices Surya Kant and N Kotiswar Singh was unsparing in its observations: “This is nothing but a complete connivance between the builders and banks and the innocent homebuyers have been taken for a ride.”

Supertech was named a major defaulter, with the court directing the CBI to proceed in phases before lodging FIRs. A Special Investigation Team (SIT) will be constituted with officers drawn from UP RERA, HRERA, the state police departments of UP and Haryana, and a Chartered Accountant nominated by ICAI. Corporation Bank, identified as the lender with the highest loan exposure, has been directed to fund the administrative setup for the amicus curiae and law clerk.

The Court also expressed dismay over coercive tactics by banks, despite the matter being sub judice. It granted buyers interim protection from such actions, stating: “It shall pull up the manager of any misuse of the order/direction of this court.”

Thousands of homebuyers across Noida, Greater Noida, and Gurugram remain stuck in projects delayed indefinitely or pushed into insolvency. Many had signed subvention schemes where builders promised to pay pre-EMIs until possession, only to default later—prompting banks to pursue the buyers instead.

What homeowners can do now

1. Assert legal protection: The Supreme Court’s interim relief protects buyers from coercive actions, including EMI recovery, property seizure threats, or cheque bounce cases. Report any such action to the court through a lawyer or appropriate authority.

2. Cooperate with CBI and SIT: Stay alert for communication from the investigative agencies. Homebuyers may be asked to submit documents or provide statements.

3. Document everything: Preserve all agreements, disbursement letters, receipts, and communications related to the home loan and builder promises.

4. Engage with RERA and consumer courts: File complaints against builder delays or violations. If applicable, explore remedies under the Consumer Protection Act or Insolvency Code.

5. Organise collectively: Join or form buyers’ associations to coordinate legal strategies, raise awareness, and engage with SIT and media.

6. Escalate to RBI: If banks violated disbursement norms, file complaints with the Reserve Bank of India. Delays in project updates or non-registration should also be flagged with state RERA bodies.

7. Seek expert advice: Consult financial advisors—especially CAs linked to the SIT—for help with EMI liabilities, credit scores, or arbitration options.