New Delhi: The Delhi High Court has restrained banks and housing finance companies from taking any coercive action to recover EMIs from homebuyers over incomplete projects on a plea by a group of homebuyers.
In a recent court order, the bench of Justice Rekha Palli, while hearing a case involving the petition of homebuyers who invested in projects where the builders were supposed to pay EMIs till possession but they stopped the payments midway, said prima facie it appeared that the loans were disbursed without any regard to the advisories of the Reserve Bank of India and the National Housing Bank.
“The balance of convenience at this interim stage lies in favour of the beleaguered homebuyers, keeping in view that they are being penalised despite not being at fault,” the Judge said.
The court also observed that grave and irreparable loss will be caused to the petitioners if they are not granted any interim protection.
The plea brings to light the sorry state of affairs in the construction industry.
Petitioner’s counsel Advocate Aditya Parolia said that the petitioners have booked their flats by giving the initial advance instalments.
She argued that the homebuyers were now being asked to pay EMIs despite the fact that none of the projects was complete or the builders had gone into insolvency while the homebuyers were still waiting for the possession of their dream house.
The counsel said that the banks and financial institutions had disbursed loans to the builders at one go without verifying the actual status of the projects.
This led to a situation where the banks were demanding payment of EMIs from the homebuyers despite the fact that the builders had undertaken to discharge this liability till possession, the counsel added.