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Why banks should not be prosecuted? Asks Navneet Kumar Sarin, an aggrieved home buyer




That is a valid demand raised by an aggrieved consumer located in the NCR: No Home, No EMI!

And it makes perfect sense in a democracy where culprits need to be caught and brought to books, not the poor victim---the affected party, in this case, the consumer of that costly brand!


The main point of the logic is this: After taking the consumers for a ride, the developers walk way almost unscathed. Even the banks do not get penalized for not performing their legal duties in a scrupulous manner. The only person caught is the hapless consumer--the typical middle-class home buyer, a voiceless entity in a nation driven by the politics of the vote banks and muscle power.

Of late, things are changing for good.


More and more buyers are organising themselves into blocks and holding protest rallies and raising issues against the triad of the corrupt and mighty builder lobby, bureaucrats and banks. NOIDA is a recent example where critical public opinion led to the current government assuring the implementation of model RERA in place of the diluted RERA brought in by the previous administration.


Now the time for considering the following points of the argument for not giving the EMIs to the banks that failed in their duty to properly scrutinize and monitor the documents submitted by the builders and check their claims, followed by a close monitoring.

If this has been done correctly, buyers would not land in a soup--and lose their hard-earned money.


Now, have a look at these points, please and decide on the merit of the argument advanced by a literate consumer, a home buyer:


  1. Role of banks in any real estate scam is one of the accomplices who lured home buyers by offering easy loans.
  2. Banks failed to check proper documents and outstanding liabilities toward land payments.
  3. Banks failed even in verifying or obtaining duly approved layout plans and maps.
  4. Banks also failed in verifying if all required approvals have been procured by builder and they never bothered to follow these up.
  5. When banks were aware of all these irregularities, why they went on sanctioning and releasing loans under various plans including subvention plan?
  6. Development Authorities who were supposed to monitor timely construction or developments also totally failed in their duties. 


“When whole system has failed, why only buyers should get penalized for the mistakes of all these institutions?” asks the articulate buyer who refuses to be duped by the system mired in corruption and apathy; a system that does not prosecute the guilty but the righteous and the clean client.


Yes, indeed, it is a cogent case, worthy of being taken up by a competent court for further action and by the State for a thorough investigation by the agencies. Already such a campaign is on in the social media and it is hoped that it gets more traction in the coming days, thus, empowering the buyers.

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Written by Sunil Sharma


Agree with pov. The banks have been hands in complicit with the full process & feed off the homebuyer once the initial payments are done. There is no accountability fixed on part of banks if the builder defaults. That should be strange as the banks are a "pary" in tripartie agreement among bank-builder-buyer, so there has to be some accountability

Ys Both banks and development authorities must also be punished. The development authorities cannot just collect money and allow developer to collect more from buyers, standing by and collecting more money. They should be playing an active role and ensure that the developer delivers. So also the banks. Authorities and banks do collude with developer and cheat the banks.

  • by Veena
  • Sat, Sep 23rd, 2017

It's completly nexus of builder and banks. Banks are equally responsible for all this mess. In an article, SBI said that under construction Property is always a risky option and buyers should go for hair cut for these types of investment. My question to SBI is where were they at the time of sanctioning the loan? These builders and banks spread the rumours and misled lacs of home buyers that bank approved projects are safe. No EMI till we get refund/home and that too without penalty

I strongly support the cause No Home No EMI, Banks till now have been just enjoying the agony of home buyers, without taking any responsibility for this mess. Banks charge hefty processing fee which is a shame because they rarely due the legal check and property status check, they are hand in glove with builder's in duping common people like me. A strong case exists to make Banks pay for their foolishness and blunders

Though the Project is delayed by 7 years I am a retired Sr Citizen & my lifetime savings are stuck up.

Unihome Ambala

I have booked a flat in Unihomes, Mohali. I strongly agree with this opinion.. No EMI should be paid to bank. It should also be held accountable along with the builder.

This is a very valid point. The banks are supposed to verify end use. Most of the agreements have a construction linked payment plan, where the installments are based on the floor slabs that the builder lays out. In most of the cases, the builder will create the external structure, pillars and slabs ONLY to get the money from the Bank. Who defines what it means to have a floor slab complete? Its the duty of the bank to ensure that when a floor slab is done, it should also mean the walls and the interior structure is completed as well. This way the builder quickly in a matter of months gets the entire loan amount whereas the construction is only 20% - 30% completed. The banks are in cahoots with the builders and they execute Tri-partite agreements to safeguard their interests.

I support the cause and sign the petition

I agree beside my earlier comments I want to say that I have paid full amount with some rebate but putting in my bank loan also but if I would have not paid in full I would have got almost double of the amount from fdr than that of rebate whose time was upto 2013 only so iam losing interest on bank loan and also interest on the amount paid in full to Unitech I am on pension so the situation is very harassing one I may also like to mention that the builders are give loan by the banks when our money is always with the bulder this requires attention because our flats rather towers are mortgaged by the builder to the banks which is a second charge when they did the agreement with the home buyer as first charge so ours is the first charge as per law and no bank can overlap such process who's is also questionable as per law

Real estate properiters must be punished

Yes.banks are equally liable as they were hand in gloves in this fraud of the builders.they should be included in the list of parties who have played the fraud with the home buyers

Yes, I support that why the middle class home buyers be panalisd in place of corrupt and exploiter builders. Builders are escaped scot-free by the corrupt politicians and bureaucrats.

When projects are financed by bank initially poeple get impressions that the same is good and safe so they start investing for their Dream Home

I fully endorse the views of Mr Sarin and Mr Sharma ; all the associated/ concerned agencies/ Govt departments involved in the process of issuing license to the builders should be brought to books and held equally accountable for the misdeeds of the builders . Why should the buyers only run from pillar to post to redeem their loss ?

Banks are hand in glove with builder to fool the customer . They know the status of builder and know their intentions . It's a trap they set for the consumers, then threaten them with CIBIL score if buyer can't pay EMI. It is time the banks needs to be brought to books and be penalised for trapping the consumers .

If builder does not pay you penaluty for delayed possession taking advantage of de majure then why the buyer should not get the aenefit of this clause while paying emi. There is one builder M2K who throws you out of his office if you insist for possession after paying 95 % cost ang asking them to adjust penality amount for balance 5 %.

  • by Vijay
  • Mon, Sep 04th, 2017

Let's unite against the tanashahi approach of banks. We fully support this. #nohomenoemi

  • by Yogesh
  • Mon, Sep 04th, 2017

Yes we support this initiative. #nohomenoemi.

i totally agree i have paid 95percent to unitech for unihomes 3 in march2012 till date no clue of possession after 5 years paying rent as well emi. bank like pnb housing do not even bother to reduce the rate of interest. when i request them they do not do it and tell me that they have different rate of interest. please help at least we should be allowed to hold emis till possession and banks can take interest from builder as it is builders fault that they are not making our house..

Booked the flat in 2012 within unitech's Unihomes3, tower A6, hoping to get it by 2015 or mid 2016. Got the loan approved from PNB HFL, which disbursed the amount regularly according to the demands raised by Unitech. Why the concern was not raised by them at ththe first place when things were not moving as they should. Now, when things gone worst, we are ending up paying both EMI & Rent. Totally unfair, EMI should be stopped until we get the flats, why should only buyers suffer when banks are equally responsible?? I support #NOHOME#NOEMI

Banks have approved loans even in projects where no layout plan was approved by Dev Authorities, Banks approved housing loans on projects where even land title was not clear or defective, Banks have given loans on projects where as per NGT no construction can be done Someone must ask FM is this is the way to do Banking or Banks have just behaved like selling agents of Builders Are they fit for punishment or not If you feel so support this compaign whole heartdly. Thanks

  • by Raj
  • Fri, Sep 01st, 2017

I completely agree with the above petition and support the legal action against banks and builders.

Completely agree! Banks approve a project only after checking the authenticity of it by verifying various documents from the builder including a basic check on the land clearance. If after 5 yrs of project launch and subsequent loan disbursement to customers by banks, autority comes out stating required clearnces were not obtained by builder, is bank not equally responsible for the sufferings caused to customers? If the customer before investing has failed to do due diligence even the bank has failed to do so. Why should the customer only suffer.

Pressed against the wall as need to pay EMI and rent. EMI is being paid for a property which is not constructed by the builder and Bank never took the pain to check all the related docs. Banks are equally responsible for this mess and pain to homebuyers. I am going to stop emis. #NoHomeNoEmi

It is a very good initiative by Mr. Sarin. I have been fighting with this problem for last 5 years. I had invested in Amrapali and still paying EMIs with home rent. It is becoming difficult every month to pay both. Banks have nothing to say except to ask for EMIs. Yes, Its is also the responsibility of banks to assess the builder before making poor buyer suffer. I cant run my daily expenses. I cant give good education to my children. What do I do and where do i go? We need to stand united. Request all the members to be part of this initiative. If this has been started on this platform then lets support it and make it India's biggest movement

Banks are Hand in Gloves. They knowingly partner with builders to support schemes like subvention schemes where they can suck money from buyers.

Sarin sir, I m 100 percent agree n support the idea, No EMI till No Home delivery

Bank are equally responsible with builder.what kind of verification they have done? They approved projects based on builder reputation and required approvals. It is really painful for buyer like me to paying both emi and rent.we were fully dependent on bank that they have all required verification. If builder is not building then what is buyer fault.why should they pay emi as they are already mentally suffering. I recommend to stop emi until there is no construction. It will be only after offer of possession.

I find banks also equally responsible for this mess.

I strongly support the cause No Home No EMI, Banks till now have been just enjoying the agony of home buyers, without taking any responsibility for this mess. Banks charge hefty processing fee which is a sham because they rarely due the legal check and property status check, they are hand in glove with builder's in duping common people like me. A strong case exists to make Banks pay for their foolishness and blunders

It is really very painful to pay both rent as well as emi. government, builders and bankers are enjoying on our hard earned money and what we get in return, nothing. A SPV has been created by builders, government and bankers and serious frauds and scams are being carried out. We should stop paying EMI's until we get our homes.

Bank and builder have worked hand in hand and have left unturned no stone in cheating the customer. They have verified the records that's why we all took loan. Now all of a sudden only we as customer are suffering. Bank has responsibility towards this and yes the EMI should stop till we get the possession. "NO HOME AND NO EMI"

Yes we there should be stop to bank emi if we are not getting our homes. Bank should aslo feel the pain as we are feeling it. How they approved the loan on a project where builder is defaulter and map is not approved. They should let us know about this before giving the loan.

Couldn't agree more. EMIs have to be stopped for overdue projects till possession.

I fully agree and also suspect that bank officials are on the pay rolls of these builders. Most commercial parameters are fudged to provide profits to erring builders.

I agree with Mr sarin...banks must be answerable to buyers along with builders..both are involved In nexus of loot from poor buyers who are paying EMI for flat without a single brick laid on ...STOP EMI ..GIVE OUR FLATS

I support no home no EMI

Investigation must be done by government agency fairly and transparently and all those involved in this big scam must be sent to jail, EMI be stopped till delivery of our flats and delivery be with delayed penalty.

It was a most logical point raised by Adv.Sarin! Banks should not be let go Scot free for their collusion in the deal. Here, buyers who were trapped into scaling huge home loans are now hard-pressed to continue EMIs for as asset, the principle guarantee for the loan amount,is non existing! Advocate.Sarin is requested to look into options at court of laws,whether Emis could be stopped till construction restarts, the most logical step and an appropriate punishment for those Banks!

It's very true y should a buyer suffer when it's Banker's mistake too, Bank should start the emi after the possession of the flat. Y should only buyer suffer for no reason. I am you all

Exactly said..100% true Banks/Financial institutions who sanctioned home loan are equally responsible for this mesh and distreasing middle-class buyers. Now time has come say and take decision if No Home then No EMI. #NoHomeNoEMI

The time has come when we need to raise voice against the high handedness of Banks, who have worked just as an partner in this Real Estate Scam called Under construction Residential Projects. These Banks have bluffed and cheated innocent Home buyers by luring them to commit suicidal commitments of buying a Flat in these projects. All home buyers have to raise voice jointly so no politician however deaf he may be will hear it. Our next step in this direction will be really alarming for these cheater financial institutions. So unite and ask for your rights. Remember United We Win.

Please support

Well said, high level Enquiry should be done and honest buyers should get due justice We all buyer are in same boat

Fully agree with Sarin sir, we are looted by builder as well as Bank also. How bank sanction loan without verification of land and background of builder.

I completely agree with the above petition and support the legal action against banks and builders.

Please look into this matter urgently. I am paying rent and EMI from last 4 years. Still not sure when I will get my home

This is todays one of the biggest questions that all POOR home buyers wants to know. Why just WE? Why not BANKS? Much larger issue is our Beloved GOVT is just Sleeping and will avoid this Question to Answer. Where do we go then..........

We are waiting our home from three years. But I am sure when we will get our home. It is very difficult to pay EMI and rent. EMI should stop. Till the time our home is not handover

The offer of co developers is old wine in new bottle.Unless escrow account is opened for each project and money is made available for eah project, these offers are only for fiffusing the crisis temporarily but this is not going to work

Mr. Sarin has raised a very valid & justified concern... Why is it only the buyer who will suffer the burden of loan & EMI... How come banks are only liable for threatening the consumer & not the builders.... This has to be investigated on the top most priority, as this is a huge game of conspiracy & corruption played against the HomeBuyers.... @supreme court needs to engage independent agencies to investigate & give justice to innocent buyers, who have been waiting for years to get possession of their "dream homes".... Regards Home Buyer for Unitech Unihomes 3, Noida

I totally agree with this statement that EMIs should be stopped if builders fail to deliver on time. Bank keeps on earning from our EMIs, builder keeps on earning by blocking/investing our money somewhere else. It is just harassment of a buyer. We have been hearing suicides of farmers so far. Are we waiting for suicides of buyers now ??

  • by Prema
  • Thu, Aug 31st, 2017

Please help, I have booked flat in RG Luxury, Greater Noida, but builder had stopped construction since last 2 years and not giving possession. Please help me to get my flat from RG Group at the earliest.. All the innocent buyers are suffering from the so called fraud builders. PLEASE SOMEONE HELP!!!!!!

Buyers are in distress due to unrealistic association of builder and bankers. There should be no EMI if no possession on timeline as agreed

Sarin Sir, We r with u, by only consumer. These banks are also get penalized..

Unitech is defaulter & not delivered the project on time to innocent buyers who are cheated by unitech..no buyer will be paid the emi untill the possession of flat.PNB bank is also culprit so immediate emi stoppage option should be there for buyer releif.

I booked flat in Unihome 3 Noida in 2012 with the assurance from Unitech Ltd so called India's 2nd largest builder that I will get possession by June 2015.Hoping one day I will get my flat, every day passing in dreams only, I really feel putty on myself that we are living in a country where after paying such huge money still not getting our house. I really want all the corrupt system banks,Builders & Govt associate should be punished severely for making us to beg in front of everyone.

Bankers offered Subvention plan and they went for triparty agreement with buyer and builder. And without any Map Approval banks like HDFC Bank, PNB Home Finance went as far as paying 55-75% payments which builder invoiced and built just basic half of the structure without Formal Map Approval which was illegal and if not being deemed Approval as per rules , the builder first culprit nexus with second culprit Noida Authority then bureaucrats politicians appointed , in SP Govt , decided after 5 years that it was not approved stating baseless reasons and sitting silent on accepted development going on at site for 5 years. buyers who have paid up to 50% to 95% to builder thought heir own savings or with loans made by banks now paying emi to banks for 20 years loan amounts . What will they do, commit suicide? Builder, Finance/Bank Managers, Noida Authority Bureaucrats are responsible and have to pay for delay and develop the flats. Laws of RERA or NCLT for Builders???

Its really painfull paying EMI and rent where as no hope for flats so why we should pay EMI.banks are equally responsible for this messs.why the sanctioned the loan without verifying builder conditions ,map approval layout approval etc..looking at current situation we should not pay EMI until and unless we will not get flat..builder should construct flat then during possession only buyers will pay and till the that EMI should also not paid..

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