Subvention Scheme:
The Supreme Court has provided relief to homebuyers in the National Capital Region (NCR) under the Subvention scheme.
- The Supreme Court has instructed banks not to take coercive action against individuals who have not received possession of their flats.
- Subvention Scheme involve a tripartite agreement between the buyer, banker, and developer.
- The buyer pays 5-20% upfront, while the bank loans the rest to the developer.
- The developer pays the loan interest until the buyer takes possession, after which the buyer’s EMI starts.
- This scheme boosts sales for developers and delays EMI payments for buyers.
- However, in the present case many builders have defaulted on these payments.
