The petitioner, a homebuyer, also wants the Enforcement Directorate to investigate several developers for alleged “diversion and siphoning” of homebuyers’ funds.
A bench led by Chief Justice Surya Kant issued notice to the ministries of housing and urban affairs and corporate affairs, the Enforcement Directorate, builders such as Jaiprakash Associates (JAL) and Jaypee Infratech (JIL), Standard Chartered Bank, Yamuna Expressway Industrial Development Authority and the Uttar Pradesh Real Estate Regulatory Authority among others.
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The petitioner wants the court to issue directions to Real Estate Regulatory Authorities to carry out project-wise audits vis-a-vis escrow accounts of the developers, prohibit mortgaging or encumbering of project lands without consent of homebuyers and prior regulatory clearance, and create independent construction monitoring committees under the supervision of high courts.