The Supreme Court on Tuesday allowed CBI to register six fresh cases against defrauding of homebuyers in major cities such as Calcutta, Bengaluru, Mumbai, Mohali and Prayagraj after the agency informed the court that it has found incriminating material indicating that a “cognizable case” was found, following further investigations into the case.

A bench of Justice Surya Kant, Justice Ujjal Bhuyan and Justice N. Kotiswar Singh gave the nod to the agency.

The issue related to the “subvention” scheme, which is a tripartite agreement entered into by the banks, real estate developers and homebuyers under which the banks instead of sanctioning the loans to the homebuyers choose to disburse the loans to the real estate company for the ostensible purpose of paying the EMI towards the proposed allotment of flats to the buyers until they receive possession.

But several real estate companies defaulted in their EMI payments, following which the banks chose to proceed against the homebuyers. Aggrieved, homebuyers rushed to the top court challenging the actions of the banks.

In April this year, the bench led by Justice Surya Kant had ordered the CBI to conduct a probe, which was initially confined to the Delhi-NCR regions.

Additional solicitor general Aishwarya Bhati on Tuesday informed the court that the agency had conducted extensive investigations which revealed that there was an “unholy nexus” between the bank officials, real estate developers and civic officials. According to the CBI, about 19 banks, both in the private and public sectors, were involved.

Bhati told the court that the CBI needed the requisite nod to proceed further in places like Calcutta, Bengaluru, Mumbai, Mohali and Prayagraj, which Justice Surya Kant allowed.

The matter is expected to be heard again after four weeks.