NEW DELHI: The Supreme Court has agreed to hear a plea urging the Centre to establish a scheme ensuring that if flats under a subvention plan are not delivered to homebuyers, both the lender and builder will share the loss of the loan amount disbursed.
Under the subvention scheme, banks directly transfer sanctioned amounts to builders, who are then responsible for covering the EMIs until the flats are delivered.
However, when builders default on the EMIs according to the tripartite agreement, banks seek payment directly from homebuyers.
A bench consisting of Chief Justice Surya Kant and Justice V Mohana has issued notices to the Centre and other parties for their responses to the petition, which seeks a structured debt-relief scheme for homebuyers affected by stalled housing projects, ensuring compliance with stage-linked disbursement.
The court was reviewing a plea from a homebuyer who claimed he had not received possession of his flat and was still required to pay EMIs.
The petitioner’s counsel stated that financial institutions are failing to adhere to the subvention scheme.
While issuing a notice on the petition, the bench noted that no coercive measures should be taken against the petitioner in the meantime.
The plea calls for the Centre to “formulate a scheme providing that if the asset/flat under the subvention plan is not delivered” to homebuyers, both the lender and builder should share equal liability for the total disbursed loan amount.
In a related matter, the Supreme Court had allowed the CBI in July last year to register 22 cases regarding the “unholy nexus” between banks and developers that has defrauded homebuyers in the National Capital Region (NCR).
