Intervention to protect the interests of home buyers under the subvention scheme
subvention scheme: In a significant development, the Supreme Court has intervened to protect the interests of homebuyers who have invested in housing projects under the subvention scheme in Delhi-NCR, including Noida. The court’s direction comes amid complaints over delays in possession of flats by developers and subsequent action taken by financial institutions. Under the subvention scheme, banks transfer the sanctioned loan amount directly to builders, with homebuyers starting EMI payments only after taking possession of their properties. However, due to delays and defaults in bank EMIs by developers, financial institutions took coercive measures against homebuyers under the triple agreement, leading to widespread discontent.
The Supreme Court bench of Justices Surya Kant and Ujjwal Bhuyan passed a significant order restraining banks and builders from taking arbitrary action against homebuyers in matters such as EMI recovery or taking action on complaints related to cheque bounce. The judgment overturns previous judgments and provides relief to aggrieved buyers who had tried legal remedies in lower courts without success. Explaining the rationale behind the judgment, the bench emphasised that no punitive action can be taken against home buyers till the matter is resolved, to ensure their protection from undue harassment by financial institutions. The move is expected to bring relief to thousands of home buyers who have been grappling with long delays in possession and financial uncertainties. The Supreme Court’s intervention underlines its commitment to the protection of consumer rights in the real estate sector and sets a precedent for fair treatment of home buyers facing similar challenges across the country.
Subsidy Scheme:-
The Subsidy Scheme enables home buyers to defer EMI payments till possession of the property, with banks transferring the loan amount directly to the builders after sanction. This landmark judgement by the Supreme Court is a significant step towards addressing the systemic issues affecting the real estate sector and upholding the rights of home buyers across the country.
