Subvention scheme a ticking time bomb: Mumbai real estate set to get taste of crisis like Noida
A clash between a betrayed home buyer, an abandoned lender and a cash-strapped developer is imminent.
Khyati Shah purchased an apartment in Raj Infinia in Mumbai. The transaction was executed for a price of Rs 1.98 crore in 2013 through a subvention scheme wherein the developer was liable to pay the pre-EMI till possession of the flat. From March 2019 however, the developer, Rajesh Lifespaces, stopped making its payments while not giving possession of the apartment to the home buyer. The bank, ICICI Bank, thereafter started sending demand letters to Khyati for making the pre-EMI payment. The matter went to the regulator. RERA, on January 8, 2020, ruled in favour of the home buyer and asked the bank to deal directly with the developer for the pending payments. Meanwhile, the project is stalled.