When the projects proponent defaults in completing a project, it is always open for the banks to approach the NCLT under the Insolvency and Bankruptcy Code, 2016 – Court on its own motion Vs. Govt of NCT of Delhi and Ors. – Delhi High Court
In this case, the Complainant prays:
1. Grant full tax benefit ‘from the date of payment of-first instalment of EMI to the Bank’ to all those home buyers who have taken home loan from the banks but possession of their dream home is delayed due to the fault of the builder; or
2. Even if the project is not delayed, grant tax benefit ‘from the date of payment of first instalment of EMI to the Bank’ to all those home buyers who have taken loan from the banks;
3. Grant free legal aid to the home buyers who are fighting against the mighty builders and trying to save their hard earned money;
4. Frame a law where interests of the buyers are fully protected and errant builders are punished; and
5. Banks do not own responsibility though they sanction the projects. Frame a law and make banks accountable and when insolvency proceedings are initiated against any builder, buyers should get their share first out of the sale proceeds of the builders properties e a law and make banks accountable and when insolvency proceedings are initiated against any builder, buyers should get their share first out of the sale proceeds of the builders properties and not the banks as the banks should also bear such loss as they are solely responsible for financing the projects of the builders.
