Supreme Court orders probe into builder-bank nexus in Gurugram

Supreme Court's order for a CBI probe into Gurugram's builder-bank nexus offers hope to homebuyers after years of stalled projects and unfulfilled promises.

For thousands of homebuyers in Gurugram, the Supreme Court’s Monday order directing a CBI probe into the builder-bank nexus offered a long-awaited glimmer of hope. After years of broken promises, stalled projects and institutional apathy, many hailed the verdict as a landmark step toward justice.

Two such stalled housing projects developments by Ramprastha Developers — Skyz and Rise in Gurugram — were promised for delivery in 2014. A decade later, Skyz has left 600 families stranded, and Rise another 300. (Representational image (HT archives))

“This verdict reignites our faith in the system,” said Ritu Bhariok, vice-president of the Federation of Apartment Owners Associations of Gurugram. “Builders collected full payments and vanished, while banks and authorities looked the other way. The nexus has been an open secret. It’s time this collusion is exposed, punished, and homebuyers get back their dignity.”

The ruling has renewed focus on multiple long-stalled housing projects in Gurugram.

Two such developments by Ramprastha Developers — Skyz and Rise in Gurugram — were promised for delivery in 2014. A decade later, Skyz has left 600 families stranded, and Rise another 300. Despite years of waiting, construction remains incomplete and legal battles continue at the National Consumer Disputes Redressal Commission (NCDRC).

Amit Jindal, a resident of Gurugram’s Sector 48, said the problem runs deeper than just rogue builders. “The State, the Town and Country Planning (TCP) department, and banks all facilitated this mess. How can a builder take the money, the buyer pay the money, and the product simply disappear? No politician has ever seriously raised this concern. It’s systemic betrayal.”

Buyers from Mahira Homes, an affordable housing project under the Pradhan Mantri Awas Yojana (PMAY), called the betrayal even more painful. “We’ve lost trust in PMAY. Licenses were cancelled after builders collected 100% payment. No one is helping us,” said Gaurav Gupta, a Mahira buyer.

Another affected project is OSB Expressway Towers, launched under PMAY in 2016 at Sector 109, Gurugram. Construction began in 2017, with possession promised by early 2022. After COVID-19, the builder slowed work, despite collecting 92% of payments. Buyers appealed to authorities, but progress was sluggish. In February 2023, the DTCP suspended the builder’s license for six months. Yet again, the builder cited a lack of funds.

Col Naveen Hooda, a representative of the OSB Expressway Towers Buyers’ Association, said more than 350 complaints are pending at HRERA, but no concrete action has followed. “The RERA chairman himself said he couldn’t force the builder to complete the project. Now, the builder wants to sell commercial space to raise funds, not to finish the homes. We’ve requested DTCP and HRERA to demand a strict resolution plan before granting any further permissions.”

As calls for criminal accountability grow louder, homebuyers say the crisis won’t end without deep reform. “We’ve waited long enough,” said Jindal. “It’s time the people who shattered our dreams are finally held accountable.”