The Supreme Court has called for responses from various governmental bodies and real estate firms concerning allegations of fund misappropriation from homebuyers linked to Noida and Yamuna Expressway projects. The issue involves significant financial diversions, leaving buyers at a potential loss and developers facing insolvency.
The Supreme Court is demanding answers from the Indian government, Enforcement Directorate (ED), Reserve Bank of India (RBI), and several real estate companies in response to allegations of misappropriating funds from homebuyers in Noida and Yamuna Expressway projects.
The petition, presented by Vandana Sabharwal, suggests a pervasive problem in the real estate sector, where developers allegedly diverge homebuyer funds and transfer rights to affiliates, causing insolvency. Lawyer Prashant Bhushan highlighted ED’s findings of over Rs 14,000 crore being misused, urging speedy investigations and recovery efforts.
He urged the RBI to audit banks involved in these financial dealings, pointing out significant losses. He also raised concerns about inadequate refunds to homebuyers, lacking interest adjustments, despite property value increases. The Chief Justice noted the case's complexity and the ongoing ED investigation.
(With inputs from agencies.)