The Supreme Court has provided significant relief to home buyers awaiting possession of their flats across the National Capital Region (NCR).

This decision comes in response to a batch of pleas challenging a Delhi High Court ruling that denied relief to home buyers seeking to halt Equated Monthly Installment (EMI) payments until possession was granted by real estate developers.

The Supreme Court, comprising Justices Surya Kant and Ujjal Bhuyan, issued notices to the Centre, banks, and other concerned parties, and temporarily stayed all coercive actions, including complaints under the Negotiable Instruments Act, 1881, initiated by banks, financial institutions, or builders against the home buyers. The court allowed a two-week window for remaining parties to submit their responses.

The matter is scheduled for further hearing on September 27.

The petitioners, represented by groups like the Supertech Urban Home Buyers Association (SUHA) Foundation, argued against banks' direct loan disbursal to builders in violation of RBI guidelines, emphasizing non-compliance with EMI payments due to builders' failure to deliver possession.

The Delhi High Court had earlier dismissed these petitions, citing alternative legal remedies available under consumer protection laws, the Insolvency and Bankruptcy Code, and the Real Estate Regulation and Development Act, noting that contractual obligations and arbitration clauses were in effect for many agreements under dispute.

"There are various statutes such as RERA Act, Consumer Protection Act, Insolvency and Bankruptcy Code, 2016, SARFAESI Act etc., where the petitioners can raise their grievances. It would not be advisable to entertain a writ petition under Article 226 of the Constitution under the facts of the present cases," the high court had said.