Chandigarh, Sep 19 (IANS) In a landmark judgment, the Haryana Real Estate Regulatory Authority (HRERA) has ensured that no bank or financing agency would auction or sell a loan defaulting project to recover adjustment of the allottees dues.
Its Chairman K.K. Khandelwal said there has been a rampant increase of complaints in which a peculiar trend was noticed where promoters mortgage their project, land or structure as well as all receivables from the sold and unsold inventory to lend organisations or financial institutions, banks or creditors in order to attain bank loans to fund the construction costs for developing the projects.
“But when the promoters fail to repay the loans, the financial institutions, banks, or creditors, directly auction residential or commercial properties that have been pledged with them to recover loans from borrowers by invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act of 2002.
“Such auctions invoke great anguish and distress to the allottees of the project as there is no acknowledgement of the huge investments made by the allottees into buying their dream home. The future of such allottees is in complete darkness and obscurity. Such aggrieved allottees are bound to languish for their own hard-earned money.
“The latest judgment in interest of the allottees of the project Supertech Hues is the first of its kind in the nation,” said Khandelwal in a statement.
According to HRERA judgment, the promoter, Supertech Ltd, who is neither a licensee nor a collaborator, approached PNB Housing Finance Ltd for a construction loan for the project Supertech Hues, which was advanced to Supertech Ltd with Sarv Realtors Private Ltd as the confirming party by way of equitable mortgage of the project land measuring 33.33 acres by deposit of the title deeds along with receivables from the mortgaged properties.
It failed to repay the loans taken and hence became a defaulter.
The project was put for e-auction by the creditor company and allottees moved to the HRERA.
“It’s happening across the country. The rights of the allottees are not subservient to those of the bank and therefore, in case of failure of the banks to ensure that the funds were applied for the purpose they were granted, banks cannot be allowed to supersede the rights of the allottees.
“The financial institutions or lending banks or creditors are duty bound to ensure that the loan payments are released to the promoters after due verification of the fact that the payment so released is actually utilized towards the construction of the project.
“The lending institutions, individuals shall be held equally responsible if the amount, so released, is not put into construction purpose and is allowed to be diverted,” added Khandelwal.
–IANS
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