The Supreme Court on Wednesday directed that claims and grievances relating to alleged builder-bank fraud affecting homebuyers must first be placed before the amicus curiae instead of being filed directly before the Court.
The direction came during the hearing, where the Court is monitoring a large investigation by the Central Bureau of Investigation (CBI) into allegations of diversion of funds by developers in collusion with financial institutions.
The Bench of Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice Vipul M. Pancholi clarified that affected parties, including homebuyers, banks and builders, should submit their claims, suggestions and recommendations to the amicus curiae, who would then examine them and place appropriate material before the Court.
“Homebuyers, financial institutions or builders shall be at liberty to submit their claims, suggestions and recommendations to the learned amicus curiae for his consideration…No such claims shall be directly entertained by this Court unless it is screened through the amicus.”
The Bench also addressed requests from parties seeking access to investigation reports and clarified that sharing such material would depend on whether it could affect the ongoing probe.
“The amicus curiae will take a call as to whether sharing of such information at this stage will cause any impediment or adverse impact on the ongoing investigation.”
The Court further reiterated that the CBI investigation must progress swiftly, noting that prolonged delays would only intensify the hardship already faced by homebuyers waiting for their homes or refunds.
“Delay or prolonging of the investigation will only lead to more agony for the homebuyers who have already been harassed by the builders and developers, apparently in collusion and connivance with financial institutions and banks.”
The Bench further directed the Central Bureau of Investigation to carefully examine the report submitted by amicus curiae Rajiv Jain dated April 29, 2025, particularly the areas of investigation identified in it.
“The CBI is well advised to take into consideration every content of the report dated 29 April 2025 submitted by the learned amicus curiae.”
The Court also directed a responsible CBI officer to file an affidavit clarifying whether those investigative aspects had been taken into account while filing chargesheets in certain cases and whether they were being followed in the ongoing investigation. Additionally, the Court asked the agency to indicate a timeline for completion of the probe.
“This Court cannot wait for an indefinite period for conclusion of the investigation,” the Bench remarked, noting that investigations in several past cases had taken years, delaying the eventual outcome of trials.”