Homebuyers of the embattled Jaypee Infratech have urged the Reserve Bank of India and the National Housing Bank to direct banks and housing finance companies to put a moratorium on EMIs for home loans granted to them.
Homebuyers of the embattled Jaypee Infratech have urged the Reserve Bank of India and the National Housing Bank to direct banks and housing finance companies to put a moratorium on EMIs for home loans granted to them. In a letter to RBI and NHB, homebuyers have also asked that penal interest not be charged on the unpaid EMIs till the time of possession or refund is granted to the homebuyers. “In fact, it may be appropriate if you would instruct the HFCs to collect the EMIs from the builder who had the primary responsibility of completing the project within a period of 36 to 42 months… Kindly do not treat the non-payments as defaults but only a necessary outcome of the peculiar circumstances and the present situation,” the letter said. Under the subvention home loan schemes, the banks had informed the homebuyers at the repayment of home loans in the form of EMIs will start on a date close to possession of the apartments. “Accordingly, banks/HFCs granted the home loans to the said homebuyers after entering into a quadripartite agreement between the bank/HFC, the developer and the said home buyers. Under the agreement, the banks paid huge sums to the developer on behalf of the home buyers and the burden of such sums paid by the banks to the developer was shifted on the home buyers, irrespective of the delivery of the apartment… the developer has failed to deliver these flats even after a decade,” it said.