You are here: Home » Current Affairs » News
Third wave may get over by mid-March as cases declining, says Maha minister
Telangana CM Rao not likely to receive PM Modi on Hyderabad visit
Business Standard

Homebuyers get respite as Delhi HC restrains coercive action on EMIs

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.

Topics
homebuyers | Delhi High Court | EMI

IANS  |  New Delhi 



homebuyers
Representative Image.

The has restrained banks and companies from taking any coercive action to recover EMIs from over incomplete projects on a plea by a group of .

In a recent court order, the bench of Justice Rekha Palli, while hearing a case involving the petition of 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.

--IANS

jw/khz/bg

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Fri, February 04 2022. 18:19 IST

RECOMMENDED FOR YOU