Delhi High Court Gives Relief To Home Buyers

If you have taken a house somewhere and the project is stuck, unable to pay home loan installment ie EMI. If there is a fear of action from banks or financial institutions due to default, then this news is for you. In fact, the Delhi High Court, while giving interim relief to such home buyers, has stayed the coercive action taken by the banks.

RBI circular bypassed

Advocate Aditya Parolia, associated with this matter, said that the RBI had actually issued some circulars for banks and housing finance companies in which it was clarified that how the loan disbursement should be done in home loans. But keeping this circular aside, builders were given home finance. There was a disbursal of 70-90 percent in this. It was disbursed without checking how much construction was done or the capacity of the builder.

Home buyers filed writ petition in court

Originally, the EMI that the builder was paying, when the builders stopped giving it, the bank placed its demand in front of the home buyers. When the home buyers said that this was the responsibility of the builders and they stopped paying the installments, legal action was initiated against the home buyers. On this, the home buyers have filed a writ petition in the court and said that the builder is legally responsible for paying the EMI and not the home buyer. Banks should not against home buyers but against builders.

As long as this matter is going on, no action will be taken

Parolia told that the Delhi High Court has said that while this matter is going on, banks or housing companies should not take any such action against home buyers if they do not pay EMI. The court also found that the entire money went to the builder and the home buyers were left with nothing.