Stop banks from collecting loan EMIs for delayed projects: Homebuyers' group asks PM

NEW DELHI: A pan-India homebuyers' pressure group has sought Prime Minister Narendra Modi's intervention in stopping banks from collecting monthly instalments on home loans from those buyers whose projects have been delayed.

In a letter to Modi, Fight For RERA national convenor Abhay Upadhyay said the move will help provide such homebuyers a relief as they have to pay rent as well as equated monthly instalments (EMIs).

For projects that are delayed for more than five years, banks should be ready to take haircut and foreclose all loans without collecting any further EMIs, the letter sent to Modi last month said.

"... It will be wrong on the part of the banks to take haircut from loans taken by billionaire industrialists and while on the other hand burden middle-class homebuyers with EMIs," it added.

'Haircut' in the context of loans means giving up a part of claims by banks on debt for its resolution.

The group also pitched for providing power to the real estate regulator to attach assets of all the companies under same promoter including personal wealth to arrange funds for completion of the unfinished projects.

It reiterated its demand to constitute a high-level empowered committee comprising all stakeholders to protect the interest of homebuyers in high-risk category projects.

Fight for RERA, whose members including RWAs, NGOs and homebuyers across the country, also called for amendment in The Insolvency and Bankruptcy Code, 2016, to give first priority to homebuyers in settling their dues by completion of project or refund with interest -- without any haircut.

A copy of the letter was also marked to Housing and Urban Affairs Minister Hardeep Singh Puri.