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Supreme Court Rebukes CBI, Orders 42 Builder–Bank Cases Registered Within a Week

The bench imposed a one-week deadline to expand and formalize the probe, signaling tighter court oversight of alleged subvention-scheme fraud affecting homebuyers.

Overview

  • CBI’s proposal to send 22 new matters to state Economic Offence Wings was rejected, with the court directing the agency to take up all 42 cases itself within a week.
  • All pending preliminary enquiries must be converted into regular cases as part of a comprehensive investigation into the alleged builder–bank nexus.
  • The court authorized the CBI to requisition investigators from state EOWs if short-staffed, and said DGPs must provide suitably skilled officers within a week of any request.
  • Questioning charge sheets filed without evidence of custodial interrogation of bank officials, the bench ordered a senior CBI officer to file an affidavit on how bankers were examined and to outline a probable timeline.
  • The bench warned it may appoint a former judge to monitor the probe if progress remains unsatisfactory, noting the cases arise from subvention loans that left buyers servicing EMIs without possession.