This story is from January 11, 2020

Noida: No action against builders, 50 Shahberi buyers stop EMIs

Around 50 homebuyers in Shahberi who had sent notices to banks last month to take action against unauthorised builders have stopped paying their EMIs in protest.
Noida: No action against builders, 50 Shahberi buyers stop EMIs
Illegal buildings in Shahberi Village (File photo)
GREATER NOIDA: Around 50 homebuyers in Shahberi who had sent notices to banks last month to take action against unauthorised builders have stopped paying their EMIs in protest.
A case has also been filed by them in the Delhi high court against the banks that illegally granted loans for unauthorised properties without verification. The next date for hearing is January 30.
“The 2015 master circular of RBI states that banks cannot provide loans for illegal structures.
If the banks, including nationalised ones, gave loans without checking, they should take action and stop taking EMIs. If they aren’t doing anything, it should mean that the structures are legal. So the authority should give legal status to Shahberi buildings. Buyers are suffering on all accounts,” said Prabodh Shukla, an advocate representing the buyers.
Most of the homebuyers have taken loans for buying flats in Shahberi and have been paying monthly EMIs between Rs 15,000 and Rs 25,000. Shukla said that before stopping EMIs from January, the buyers had sent notices to their respective banks in December. Residents said that in most cases, the banks did not conduct the mandatory physical check required before approving the loan amount.
“About 50 buyers have already stopped payment of EMIs. We are fighting a case in the Delhi HC as well as the Allahabad high court. We have involved all parties, including police, CBI and RBI before taking this step,” Shukla said.
In July 2018, two five-storeyed buildings had collapsed in Shahberi, killing nine people. The authority had said that all of the 1,400-odd buildings in the area had been illegally constructed without getting maps approved. It has been suggested to buyers that they move out as most buildings are structurally weak.
Meanwhile, IIT Delhi is conducting a structural audit to determine if the buildings are strong enough.
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