The Supreme Court has issued notices to the Central government and other parties on a petition seeking a directive to formulate a structured debt-relief scheme for homebuyers affected by stalled housing projects. The proposed scheme aims to ensure compliance with stage-linked disbursal of funds.
Petition Highlights
The petitioner argued that under the subvention plan, if flats are not delivered to homebuyers, both the lender and the builder should bear equal loss of the disbursed loan amount. The notices were issued on Monday by a Bench led by Chief Justice Surya Kant, which has been addressing multiple petitions from homebuyers who booked flats under subvention schemes in Noida, Greater Noida, and Gurugram. These homebuyers allege that banks have forced them to pay EMIs despite not receiving possession of their flats.
Interim Protection
The Bench ordered that no coercive action should be taken against the petitioner in the interim. Under the subvention scheme, banks disburse the sanctioned amount directly to builders, who are then responsible for paying EMIs until the flats are handed over to homebuyers. However, when builders default on EMI payments, banks demand payments from homebuyers based on the tripartite agreement.
Homebuyer's Allegations
The petitioner, a homebuyer, claimed he did not receive possession of his booked flat and was compelled to pay EMIs. His counsel alleged that banks and financial institutions were not adhering to the subvention scheme. In July 2025, the Supreme Court allowed the Central Bureau of Investigation (CBI) to register 22 cases concerning an alleged unholy nexus between banks and developers that defrauded homebuyers in the National Capital Region (NCR).
Further Investigations
In September 2025, the top court permitted the CBI to register six additional cases to probe similar nexus in real estate projects in Mumbai, Bengaluru, Kolkata, Mohali, and Prayagraj. The court continues to monitor the situation to protect homebuyers' interests.
