Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
• The Supreme Court has agreed to examine a plea seeking stronger protection for homebuyers under subvention-based housing schemes.
• The petition argues that financial liability should be shared between developers and lenders in case of project delays or non-delivery of flats.
• It seeks a structured mechanism to protect buyers from loan repayment burdens when possession is not given.
• The plea also demands clearer regulatory controls on fund disbursal linked to construction progress.
• Notices have been issued to the Centre and other stakeholders for their responses.
The Supreme Court has agreed to hear a petition concerning protection for homebuyers affected by subvention-based housing schemes, where banks disburse loans directly to developers and builders are responsible for paying EMIs during the construction period until possession is handed over.
The petition highlights that in several cases where projects get delayed or flats are not delivered, homebuyers continue to face loan repayment obligations despite not receiving possession. It has sought a framework where financial responsibility is shared between developers and lending institutions, instead of the entire burden being placed on buyers.
It further seeks directions for the creation of a structured debt-relief mechanism for homebuyers stuck in stalled or delayed projects. The plea also calls for stronger regulatory oversight, suggesting that loan disbursals should be linked more strictly to construction milestones to reduce risks of delays and fund misuse.
A Supreme Court bench has issued notices to the Centre and other concerned authorities, asking them to respond to the issues raised in the petition. The matter brings attention to ongoing concerns around subvention-linked housing schemes, which have frequently faced disputes involving delayed delivery, financial stress on buyers, and disagreements between developers and lenders.
Under these housing arrangements, banks release sanctioned loan amounts directly to developers, while builders are required to service the EMIs during the construction phase. However, when developers fail to complete projects on time or default, banks often begin recovering EMIs from homebuyers, creating financial pressure even without possession of the property.
The case adds to a growing number of disputes in the real estate sector where delayed projects and financing structures have raised concerns over accountability, risk-sharing, and protection for end buyers.
Source PTI
Advertisement
Facebook
Whatsapp
