In a major win for homebuyers in the National Capital Region (NCR), the Supreme Court has stepped in to shield them from financial pressure caused by project delays. The court issued a stern warning against banks and builders who attempt to take coercive action against buyers who haven’t received possession of their flats under subvention schemes.
Subvention schemes are financing plans where the builder pays the equated monthly installments (EMIs) to the bank until the buyer takes possession of the property. However, delays in project completion can leave homebuyers facing a double whammy – they are still obligated to pay EMIs while lacking access to the property they’ve invested in.
The Supreme Court’s intervention halts this unfair practice. The court order prohibits banks from demanding EMI payments and filing cheque bounce cases against these homebuyers. This provides much-needed financial relief for those struggling to fulfill loan obligations due to circumstances beyond their control.
Furthermore, the court has directed builders to file a detailed response within two weeks, outlining their assets and financial situation. This move aims to hold builders accountable for project delays and ensures transparency in the process. The court also warned of serious consequences for builders who fail to comply with this directive.
This landmark decision by the Supreme Court offers a ray of hope for NCR homebuyers facing financial burdens due to delayed projects. It protects them from coercive actions by banks and compels builders to take responsibility for their delays. The court’s intervention is a significant step towards ensuring fairness and accountability in the real estate sector.
