Himanshu Singh vs Union Of India on 22 July, 2025

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Supreme Court - Daily Orders

Himanshu Singh vs Union Of India on 22 July, 2025

1. Mr. Mukul Rohatgi, learned senior counsel representing the Indiabulls Housing Finance Ltd. (now known as Sammaan Capital Ltd.) states that in deference to the order dated 13.05.2025, the Managing Director and one of their official are present in Court. He states that no anti-social element has been sent to the applicant’s house and no effective steps have been taken by the company to pursue recovery proceedings. An affidavit to that effect has also been filed.

2. On the contrary, counsel for the petitioner(s)-applicant(s) and other counsel points out that the Courts in Gurugram dealing with complaint cases under Section 138 of the Negotiable Instruments Act filed by Indiabulls are issuing bailable/non- bailable warrants to secure the presence of the home buyers.

3. We find this issue to be extremely serious. Accordingly, we direct the District and Sessions Judge, Gurugram to hold a fact- finding enquiry with respect to the Courts dealing with complaints under Section 138 of the Negotiable Instruments Act where notwithstanding the interim order(s) passed by this Court, coercive action has been taken against the home buyers. A report to this effect shall be submitted within 10 days.

4. For the time being, the presence of the Managing Director and official of Indiabulls Ltd. is exempted.

38 IA Nos. 86336 & 86346/2025 in SLP (Civil) No. 22576/2024

5. Notice on these IAs was issued on 29.04.2025 but no one has entered appearance on behalf of builder. The interim order dated 29.04.2025 is made absolute. The applications shall be taken up for final disposal on the next date of hearing. Meanwhile, liberty is granted to the builder to enter appearance. Diary No. 45036/2024, Diary No. 49635/2024, Diary No. 49642/2024, SLP (Civil) No. 12309/2023 and Diary No. 41648/2024

6. Learned counsel for the petitioner(s) seeks and is granted permission to withdraw the petitions. The same stand dismissed, as withdrawn.

Main Matter(s)

7. Application(s) for permission to file Petition(s) are allowed.

8. Issue notice on the application(s) for condonation of delay as also on the Petitions(s), in all those matters where notice has not been issued.

9. In compliance with the order dated 29.04.2025, the Central Bureau of Investigation (CBI) has filed an interim status report, inter alia, stating: (i) the gist of common allegations of preliminary enquiries; (ii) Focal point of enquiry in 7 preliminary enquiries, registered pursuant to the earlier orders; (iii) summary of common action taken; (iv) discussion about subvention scheme;

(v) outcome of enquiry from Reserve Bank of India and National Housing Bank; (vi) the preliminary enquiry against M/s. Supertech Ltd. highlighting the analysis of preliminary outcome based in 39 physical inspection of projects etc. Similar analysis in respect of the other projects located in Greater Noida Authority, Gurugram Authority, Yamuna Expressway Industrial Development Authority, Ghaziabad Authority.

10. As regard to the preliminary enquiry registered in respect of projects outside NCR, the report indicates that the said enquiry is still continuing and it will be completed in the next six weeks time period.

11. So far as the preliminary enquiries undertaken in six cases is concerned, the CBI has proposed the further course of action in paragraph 83 of the report. The CBI has recommended registration of 22 regular cases to enable it to undertake further investigation into these matters. As of now, we accept the recommendations contained in Paragraphs 83, 84 and 85 of the report. Consequently, the CBI shall register the regular cases and proceed further in accordance with law.

12. In the process of investigation, if the CBI finds any kind of impediment or additional support, they shall be at liberty to approach this Court and appropriate directions to that effect will be issued.

13. So far as the preliminary enquiry in respect of the projects outside NCR, six weeks more time is granted to complete the preliminary enquiry.

14. We appreciate the outstanding efforts made by the CBI in completion of the six preliminary enquiries for which, we believe that more than 1000 persons have been examined and voluminous 40 records have been looked into by them, besides visiting 58 project sites. We expect that even after registration of the regular cases, the CBI will, having regard to the magnitude and gravity of the issues, promptly investigate and take the investigation to its logical conclusion.

15. Mr. Rajiv Jain, learned Amicus Curiae, has submitted a comprehensive note dated 20.07.2025. His report has critically analysed the issues like: (i) unequal bargaining power between the parties resulting in contravention of guidelines of RBI and NHB;

(ii) the status of the projects and payment plans; (iii) information about loan disbursements; (iv) lopsided terms of builder – homebuyer agreements; (v) possible recourse by banks/HFCS; (vi) property security myth and mortgage in builder – builder and tripartite/quadripartite agreements and the role of development authorities; (vii) status of developers and hidden players – role and impact; (viii) on efficacy of RERA and disclosures on their websites; (ix) regulatory lapses by development authorities; and, (x) honoraria.

16. In the aforesaid report, Note No. 1 highlights the transparency and responsibility of development authorities including RERA and the necessity to reconsider their role with reference to the protection of home buyers from unscrupulous builders.

17. We request the learned Amicus Curiae to supply a copy of the note-cum-report dated 20.07.2025 to Ms. Aishwarya Bhati, learned ASG for information and necessary action.

18. We place on record our appreciation for the efforts put in by the learned Amicus Curiae for the preparation and submission of the first note-cum-report, which is taken on record.

19. Counsel for the Union Bank (earlier known as Corporation Bank) seeks and is granted one week time to submit a proposal with reference to Paragraph 24 of our order dated 29.04.025.

20. Tag Writ Petition(s)(Civil) No(s). 480/2025, SLP (Civil) Diary No. 26302/2025, Diary No. 27583/2025, SLP (Civil) Diary No. 25161/2025, Diary No. 1109/2025, SLP (Civil) Diary No. 38104/2025 and SLP (Civil) Diary No. 38696/2025 with these matters.

21. On oral mentioning, Diary No. 37542/2025 and Diary No. 35659/2025 are taken on Board. Tag Diary No. 37542/2025 and Diary No. 35659/2025 with these matters, subject to curing of defects, if any.

22. The parties are directed to supply soft copy of applications to the learned Amicus Curiae.

23. List on 26.08.2025 (NMD) at 2:00 p.m. (NITIN TALREJA) (PREETHI T.C.) ASTT. REGISTRAR-cum-PS ASSISTANT REGISTRAR 42

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