NCLT rejects plea for investigation into Indiabulls Housing Finance affairs

Supertech Realtors claimed that Indiabulls Housing Finance had wrongfully deducted excessive amounts from its loan account. In their complaint, the real estate firm asserted that the correct amount owed to them was Rs 58.73 billion, but Indiabulls Housing Finance deducted Rs 61.50 billion from their loan account. They alleged that this act was fraudulent and had implications for public interest, affecting their ability to deliver flats to customers.

Supertech Realtors, notorious for the televised controlled implosion of two of its multi-storeyed buildings following a Supreme Court ruling on environmental violations, presented the case to the NCLT.

Indiabulls Housing Finance, relying on a Reserve Bank of India (RBI) order dated September 9, 2022, argued in court that the dispute was a bilateral matter to be resolved between the involved parties. The RBI order stated, "The parties based on their commercial wisdom have entered into contractual obligations and commitments on their own choice and freewill." It emphasized that the alleged illegality raised by Supertech should not be the basis for any relief.

Supertech Realtors, however, contended in court that the RBI had indeed found Indiabulls Housing Finance in violation of the regulator's guidelines and fair practices code. Despite this, the RBI had only issued a warning to the company, prompting Supertech to demand more severe action.