Supreme Court Issues Contempt Notice To Sammaan Capital MD For Continuing Loan Recovery Proceedings Against Homebuyer Despite Stay Order

The Supreme Court recently issued notice to the Managing Director of Sammaan Capital (erstwhile Indiabulls Housing Finance Ltd.) to show cause as to why contempt proceedings not be initiated against him for continuing recovery proceedings against a homebuyer despite a stay order passed by the Court.

"The Managing Director of the Indiabulls Housing Finance Ltd. (now Sammaan Capital Ltd.) is directed to remain present in the Court on the next date of hearing to show-cause as to why contempt of court proceedings, under the Contempt of Courts Act, 1971, be not initiated against him", a bench of Justice Surya Kant and Justice N Kotiswar Singh ordered.

The Court was dealing with an application filed in the case where it earlier directed CBI probe into a "builder-banks" nexus in the National Capital Region. This order was preceded by an observation that certain real estate companies, and banks which sanctioned loans to them for their projects in NCR, had taken poor homebuyers to ransom.

Counsel for the applicant-homebuyer argued that Sammaan Capital was continuing with the recovery proceedings and taking coercive action by sending anti-social elements to the applicant's house, despite an order passed by the Court staying such recovery proceedings.

As such, besides issuing contempt notice and summoning Sammaan Capital's MD, the Court directed that no action for recovery of the house loan be taken against the applicant. The matter is listed on July 22, 2025.

Case Title: HIMANSHU SINGH AND ORS. Versus UNION OF INDIA AND ORS., SLP(C) No. 7649/2023 (and connected cases)

Click here to read the order