Authority: Supreme Court of India (Chief Justice Surya Kant, Justice Joymalya Bagchi, Justice V. Mohana)

Order Date: 06‑08‑2026

Case Overview

  • Parties: Petitioners – Himanshu Singh & Ors. (home‑buyers‑cum‑borrowers) vs. Respondents – Union of India & Ors. (including various banks, HFCs and builders). The petitions (Special Leave to Appeal No. 7649/2023) arise from a Delhi High Court judgment dated 14‑03‑2023 in WP(C) No. 1225/2021.
  • Nature of dispute: Allegations of systemic failure by statutory and government authorities, and circumvention of regulatory frameworks by banks and Housing Financial Corporations, resulting in illicit benefits to builders/developers at the expense of home‑buyers. Issues include project delays, non‑possession of allotted units, and alleged collusion between financial institutions and developers.
  • Key observations:

1. The Court relied on the recommendations of Amicus Curiae Rajiv Jain (order dated 29‑04‑2025) which directed the CBI to commence preliminary enquiries and later register regular cases.

2. CBI has registered 56 FIRs, filed final reports in 18 cases, and lodged 17 charge‑sheets. Cognizance has been taken in 3 cases. 34 prosecution sanctions under the Prevention of Corruption Act, 1988 are still awaited.

3. Amicus Curiae submitted 38 Special Leave Petitions and 52 Interlocutory Applications on 04‑05‑2026 for further examination, all relating to the same set of builders and projects.

4. The CBI seeks additional police personnel from Uttar Pradesh, Rajasthan, Tamil Nadu, Maharashtra, Haryana, Punjab and Karnataka; the states have not responded.

5. Amicus Curiae’s Note 7 (dated 06‑08‑2026) records 283 petitions/applications involving 2,041 petitioners, of which 977 have supplied required information; many remain incomplete.

6. Note 8 (dated 06‑08‑2026) provides comments on CBI investigations, supplies soft copies of 81 SLPs and 52 Interlocutory Applications, and categorises representations received from home‑buyers across multiple states.

Directions / Orders

1. Police deployment: DGPs of the seven listed states must deputise suitable police officers to assist CBI within two weeks; failure will attract serious judicial scrutiny.

2. Bank sanctions: The competent authorities of Bank of India, State Bank of India, United Commercial Bank, HDFC Bank Ltd., ICICI Bank and Samman Capital Ltd. must grant Section 19 sanction under the PC Act for prosecution of implicated officers within two weeks, else submit an explanation to the Court.

3. CBI‑Enforcement coordination: CBI to forward details of cases requiring Directorate of Enforcement’s cognizance of proceeds‑of‑crime offences.

4. Further scrutiny: CBI to examine all representations, documentary evidence and additional material forwarded by Amicus Curiae.

5. Charge‑sheet comments: CBI to investigate the detailed comments in Amicus Curiae’s Note 8 on the three charge‑sheets (soft copy to be supplied via pen‑drive/email to the Additional Solicitor General).

6. Specific builder investigations: CBI to investigate alleged offences by:

  • Ozone Group (Karnataka, Maharashtra, Tamil Nadu)
  • Vivansaa Baalsam (Bengaluru)
  • Rudra Buildwell Construction Pvt. Ltd. (Greater Noida)
  • Omaxe Group (Chandigarh)

A separate status report on these investigations must be filed before the Court.

7. Mortgage‑agreement examination: Where no quadripartite agreement exists, CBI to determine whether banks/HFCs signed mortgages over flats without the actual lease‑holders and whether any wrongful loss resulted.

Applications and Interim Orders

  • Deletions: 24 applications by home‑buyers to delete proforma parties allowed (risk on petitioners).
  • Bank deletions: 15 applications by financial institutions to delete themselves from specific petitions to be re‑examined after petitioner response (two‑week deadline).
  • Substitution: Two applications substituting “HDFC Limited” with “HDFC Bank Limited” allowed; memo of parties to be corrected.
  • Impleadments: 69 home‑buyer impleadment applications and 33 bank/HFC/builder/CIBIL impleadments allowed; amended cause titles to be filed.
  • Withdrawals: 7 home‑buyer withdrawal applications to be noticed; further settlement‑based withdrawals to be scrutinised by Amicus Curiae.
  • Specific IA directions: IA 200301/2024 allowed; IA 136883/2025 directed to CBI for enquiry; IA 11184/2026 rejected (de‑tagging denied).
  • Collation of similar IAs: Counsel to submit short notes on any IA similar to those already disposed; Amicus Curiae to collate recommendations.
  • De‑tagging: SLP (C) Nos. 27482, 27484, 25407 ordered de‑tagged; to be listed on 16‑09‑2026.
  • Transfer petitions: Delay condoned; transposition allowed; cause titles to be amended; records to be forwarded by respective High Courts.
  • Specific home‑buyer grievance (IA 86336/86346): Builder directed to reserve one unit; if petitioner deposits balance allotment price within four weeks, possession must be granted within four weeks thereafter.
  • W.P. (C) No. 128/2026: De‑tagged and listed for 18‑09‑2026.
  • All remaining matters (except disposed/de‑tagged) listed for hearing on 17‑09‑2026.

Final Outcome

The Supreme Court issued comprehensive interim directions to expedite CBI investigations, compel state police assistance, and obtain sanction for prosecution from the implicated banks. Numerous applications concerning deletions, substitutions, impleadments and withdrawals were either allowed or rejected as specified. Several petitions were de‑tagged, and transfer petitions were approved. The remaining batch of cases is scheduled for hearing on 17‑09‑2026 (with one on 18‑09‑2026).

Topics: Real Estate Fraud, Banking Corruption, CBI Investigation