In a significant ruling, the Supreme Court has come to the aid of home buyers in Delhi NCR, prohibiting banks and financial institutions from harassing them over dues under the Interest Subsidy Scheme. The court has given a two-week window for respondents to file their replies and will hear the case next on September 27.
The petitioners, who claim to be victims of illegal loan disbursement by banks to builders in violation of RBI guidelines, had approached the court after the High Court dismissed their writ petitions. The High Court had cited alternative remedies under consumer protection laws, insolvency and bankruptcy codes, and real estate regulations.
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The Supreme Court now order that no threat action against the home buyers booking flats under the Interest Subsidy Scheme but are yet to receive possession. This includes protection from complaints under Section 138 of the Negotiable Instruments Act, 1881.
In addition to shielding home buyers, the court has also warned builders of consequences if they fail to comply with its orders. The ruling is a significant relief for home buyers who have been struggling to secure possession of their flats despite paying EMIs.
The Supreme Court’s decision overturns the Delhi High Court’s order of March 14, 2023, which dismis petitions seeking instructions to banks and financial institutions to halt EMI collections until possession of flats.
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