IMPLEMENTATIONS OF DELHI HIGH COURT ORDER FOR HOUSING LOAN

The Monitoring Committee constituted by the Hon’ble High Court of Delhi regarding Unauthorised Construction, Misuse of Properties and Encroachment on Public Land has issued the following directions for immediate compliance by the banks/Financial Institutions:

• For Construction of Building - An applicant asking for credit facility for construction of house have to submit a copy of sanctioned plan by competent authority in his name and an affidavit-cum-undertaking must be obtained (so that he shall not violate the sanctioned plan). It shall be the sole responsibility of the executant to obtain completion certificate within 3 months of completion for construction, failing which the bank shall have the power and the authority to recall the entire loan with interest.
• For Purchase of Constructed/Built up Property - The applicant have to submit an affidavit-cum-undertaking declaring that the said built up property has been constructed as per sanctioned plan and as far as possible has a completion certificate also. An Architect appointed by the bank must also certify that before disbursement of the loan. No loan should be given in respect of the properties meant for residential use, but which is intended by the applicant for the use of commercial purposes as well as the property which fall in the category of unauthorized colonies.