Supreme Court Intervenes in NCR Housing Project Delays, Seeks Details

New Delhi / November 16, 2024: The Supreme Court of India has intervened in a matter concerning delayed housing projects in the National Capital Region (NCR) and the subsequent harassment faced by homebuyers who opted for the subvention scheme, media reports said.  

Under this scheme, banks directly disburse loans to builders, who are then responsible for paying EMIs until project completion and handover. However, numerous builders have defaulted on their EMI payments, leading banks to pursue homebuyers for the outstanding dues.

Hundreds of distressed homebuyers have approached the courts seeking relief from coercive actions like recovery notices and cheque bounce cases. 

A bench led by Justices Surya Kant and Ujjal Bhuyan took cognizance of the issue and sought detailed information on payments made by builders and buyers, project status, and legal proceedings against defaulting builders, including those under the Insolvency and Bankruptcy Code (IBC).

The court has directed all parties involved, including homebuyers, builders, and banks, to submit detailed information regarding various projects, such as payment details, promised possession dates, project completion status, recovery efforts against defaulting builders, and any actions taken under the Real Estate Regulatory Authority (RERA).

The court had earlier granted interim relief to homebuyers, preventing banks and builders from taking coercive actions for EMI payments and cheque bounces. However, homebuyers contend that banks violated RBI guidelines by disbursing loans directly to builders without proper verification. They view themselves as victims caught between irresponsible builders and non-compliant banks.