The Delhi High court recently quashed a writ petition filed by the Supertech Home Buyers’ Association and other home buyers’ petitions seeking directions for financial to not to charge pre-EMIs or EMIs from them till delivery of possession of flats by the real estate developers Supertech Limited. The High Court struck down the plea as the petition is not maintainable since buyers have protection under the buyer-developer agreement, Consumer Protection Act, Insolvency Act and the RERA.
High Court Judge Purushendra Kumar Kaurav opined that adopting alternative methods of redressal of the problem would be suitable for deliverance of quick justice in the matter that affects a large number of home buyers. In fact, 123-member Supertech Urban Home Buyers’ Association and some other individuals availed loans from banks and other financial institutions to buy homes under subvention scheme.
They credited the whole amount to the builder directly. The onus to pay pre-EMI or EMI is entirely rests with the developer. But the builder is not fulfilling his role property. At the same time, he did not handover the flats to the customers. Banks have been pressurizing customers to pay the EMI or pre-EMI. In this backdrop, they moved Delhi High Court.
Hearing both sides, the judge explained his inability to issue any orders in the matter. The case is dependent on agreements between buyers and developers. Moreover, such cases are being heard by various tribunals. Besides the RERA Act, Consumer Protection Act, Insolvency Act and other alternative ways and means to settle the dispute are available for the injured in the case. Therefore, petitioners should approach appropriate forum to resolve the cases. He quashed the petition saying that the writ plea is not admissible.
