Predatory lending: HC seeks replies of NHB, PNBHFL

IANS 02 April 2019

Consumer Interest

The Delhi High Court on Monday sought responses of the National Housing Bank (NHB) and the PNB Housing Finance Limited (PNBHFL) on a plea seeking to protect interests of home loan customers who have become victims of corporate malice.

A Bench of Chief Justice Rajendra Menon and Justice Anup Jairam Bhambhani asked the NHB, the agency promoting housing finance institutions in the country, and the PNBHFL to file responses by August 9, the next date of hearing.

In his public interest litigation (PIL), Abhijit Mishra alleged the PNBHFL was engaged in "malicious and illegal predatory lending practice" and sought its audit by the NHB.

The petitioner has also sought action against the PNBHFL under the provisions of the National Housing Bank Act for failing to comply with the NHB's master circular.

He said the PNBHFL had been disbursing housing loans, sanctioned to individuals, without closely linking them to the stages of house construction.

Innocent people, who had not complied with the mandatory norms of the NHB, the Real Estate Regulatory Authority (RERA), the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI) and the Greater Noida Industrial Development Authority were becoming victims of PNBHFL's malpractices.

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Comments

User

GLN Prasad

7 years ago

It is true that there is nexus between Builders and some financial institutions. The borrower has to commence repayment of lending through EMI even without getting possession or even before completion of the house. When the loan is linked to builders, the borrower's responsibility should commence after getting occupation after the construction of the building. Institutions finance individual borrowers within no time and demand EMI even with the knowledge that borrower was cheated by builders.