The Delhi High Court had refused to give relief to the home buyers.
The Supreme Court has sought a report on the status of pending housing projects in the National Capital Region (NCR). Buyers took loans under subsidy schemes to buy houses in these projects. The EMI of the loan was to be paid to the builders till the possession of the house was handed over. But, the builders could not complete the project on time and neither did they pay the EMIs to the banks. On default of builders, banks started charging home buyers. Under the subsidy scheme, the banks transferred the sanctioned amount directly to the accounts of the builders.
As per this scheme, the builders had to pay the EMI till the buyers got possession of the flat. Against this, the home buyers approached the Supreme Court. A bench of Justice Suryakant and Justice Ujjal Bhuyan studied the issue extensively and sought information from all concerned parties. The court said it is necessary to find out how much the builders have paid to the banks, how much the buyers have paid to the builders or the banks and what is the current status of the projects.
The apex court sought details of payments made to banks by builders and buyers, date of handover of possession in projects declared complete, current progress of housing projects, status of recovery from buyers, facilities promoted by them. Builders and their current status at the time of launch and whether Insolvency and Bankruptcy Process (CIRP) or any other recovery process has been initiated against the builder. The Supreme Court had earlier given relief to home buyers and restrained banks and builders from taking strict action against them. The court also directed that no complaint should be lodged against the buyers in cases like check bounce.
In a decision in 2023, the Delhi High Court refused to give relief to home buyers. The home buyers approached the Supreme Court against this decision. The Supreme Court has given interim relief to the buyers. The petitioners alleged that the banks illegally deposited the loan amount in the accounts of the builders in violation of RBI guidelines.