Banks cannot Initiate recovery For Non-Payment of EMI Due to Default of Builder/Developer  

Mudit Saxena Vs Union of India (Karnataka High Court)

Banks Can Not Initiate Recovery of Loan From Homebuyers For Non-Payment of EMI Due to Default on the part of the Builder/Developer (Karnataka High Court): RERA

In a significant order, Karnataka High Court prohibits Punjab National Bank Housing Finance Limited (PNBHFL) from using coercive means to recover money from loan borrowers who entered into tripartite agreements  for booking of apartment units with M/S Mantri Developers Private Limited under the “Pre-EMI Scheme.”

Brief Facts Of The Case : 

1. All the petitioners had booked their apartment units with the Respondent – Developer i.e., M/S Mantri Developers Private Limited, in terms of “Pre-EMI Scheme” i.e., Pre-Sanctioned loans vide Tripartite Loan Agreements entered into by & between the Petitioners, Developer & the PNBHFL.

Please become a Premium member. If you are already a Premium member, login here to access the full content.