for the National Housing Bank, which regulates housing finance companies, told The Indian Express that no such notification on the 20:80 scheme has been issued to these institutions.
Secondly, RBI wrote to various segments of banking sector such as urban cooperative banks and regional rural banks about this order over several days. During this interregnum, many banks and developers have managed to complete the deals under the scheme, industry sources said on condition of anonymity. Since it is not retrospective, they would be spared as well. The notification is assumed to be for the new deals.
If banking sources are to be believed, many back-dated agreements will be signed due to lack of a monitoring system. At one sales counter, a buyer was told that post-notification, prices would increase and the helpless buyer succumbed to it and agreed to go ahead with a back-dated agreement.
RBI has insisted that the disbursement should be construction-linked. A banking source said that not every bank has competent experts to understand or ascertain the construction process for the disbursement of the fund. “One can always hire those services from outside but then, it might just open up another window of nexus and corruption, the source added.
In the current slow market, most developers were planning to take advantage of the festive season with 20:80 schemes. After the RBI notification, several advertisements under the scheme were immediately withdrawn, and new variants are slowly making an appearance. “It is evident from the sudden withdrawal that developers were interested only in cheap funds and were not bothered about the buyers,” said Ganeshan.
One developer in the Mumbai region has advertised an interesting scheme. He proposes that after paying the booking amount of 20 per cent up front, the buyer needs to pay 20 per cent once every year, with the last instalment of 20 per cent on possession. The project has not yet started and a company representative said that it would be ready in 2016. This would not be linked to the progress of construction, though. This is irrespective of the loan.
There is another scheme doing the rounds: