Press "Enter" to skip to content

Facilitate amendment of homebyers CIBIL ratings: Delhi High Court – The New Indian Express

Delhi High Court clarified that its interim orders will bind the lender banks before it as well as the assignees of the debt.
Published: 04th April 2022 10:11 PM  |   Last Updated: 04th April 2022 10:11 PM   |  A+A-
Delhi High Court (Photo | EPS)
NEW DELHI: The Delhi High Court has directed the lender banks and financial institutions of certain homebuyers, who have invested in projects by “defaulter” developers, to provide appropriate information to Credit Information Bureau (India) Limited (CIBIL) to facilitate the suitable amendment of their ratings.
Justice Rekha Palli, who was hearing a batch of petitions by several buyers/owners’ associations as well as individual homebuyers, also extended the interim order restraining banks and financial institutions from taking any coercive steps against the petitioners.

“In the light of the interim order dated January 31, 2022, the respective banks/financial institutions are directed to provide appropriate information regarding the petitioners to Credit Information Bureau (India) Limited (CIBIL) in accordance with the interim order dated January 31, 2022, so that the ratings of the petitioners are suitably amended,” the court ordered on March 28.
The court clarified that its interim orders will bind the lender banks before it as well as the assignees of the debt.
In the present batch of cases, the petitioners had booked flats with certain developers by availing loans under the subvention scheme and entering into a tripartite agreement with the developers and the bank/Housing Finance Companies (HFCs).
Under the scheme, the banks/HFCs was supposed to disburse the sanctioned amount directly to the accounts of the developers who were to then pay EMIs on the sanctioned loan amount until such a time that the possession of the booked residential units would be handed over to the home buyers.
It was the petitioners’ grievance that when the developers started defaulting in making the payments towards the EMIs to the banks/HFCs, the action was initiated by most banks and HFCs against them.
The petitioners had thus sought a direction to the banks not to charge the EMIs from them and other homebuyers till possession is delivered to them by the developers.
While granting interim relief to the petitioner, the court had said on January 31 that these cases brought “into light the well-known sorry state of affairs which has been recently going on in the construction industry.”
The court had opined that the petitioners appeared to have been “left in the lurch” as even after investing their hard-earned money, the construction of the residential flats/apartments have not been completed till date and they have not been granted possession of the residential units as promised by the developers who have apparently already received the loan amounts from the bank/HFCs.
“I am, therefore, of the view that, the petitioners who have invested their lifetime savings and their hard-earned income to purchase residential units, cannot be made to suffer the consequences of this apparent collusion between the banks/HFCs and the developers,” the judge had said.
The court had added that prima facie the loan amounts appeared to have been disbursed without any consideration for the stages of construction and without any regard to the guidelines of the Reserve Bank of India.
O
P
E
N
Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.
The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.
Muslims mark Eid al-Fitr holiday with joy, worry
India’s power consumption grows 13.6 per cent to 132.98 billion units in April
Rahul slams Modi government, accuses it of misgovernance
Captaincy pressure burdened Jadeja’s performance: Chennai Super Kings skipper MS Dhoni
Flight turbulence: DGCA starts multidisciplinary probe; SpiceJet says flyers were told to remain seated
Royal Enfield joins hands with Italian riding gear brand Alpinestars
Copyright – newindianexpress.com 2022
The Morning Standard | Dinamani | Kannada Prabha | Samakalika Malayalam | Indulgexpress | Edex Live | Cinema Express | Event Xpress
Contact Us | About Us | Careers | Privacy Policy | Search | Terms of Use | Advertise With Us
Home | Nation | World | Cities | Business | Columns | Entertainment | Sport | Magazine | The Sunday Standard

source