Loan against Subvention Scheme

551 votes

Hi there, in order to provide you with an appropriate advice I'll be needing additional details: 1. Structure of Subvention scheme 2. NCLT order in favour of the ARCE 3. Proposed resolution plan of ARCE submitted to the NCLT. Based on these documents I can advise you properly.

Advocate Ishan Parashar LawRato

532 votes

Once the NCLT has approved the resolution plan for the Supertech ORB project and possession is being offered to you on payment of the balance amount, your status changes from a subvention-linked buyer to a regular home loan borrower. The subvention arrangement was always a tripartite contractual arrangement between you, the builder, and the lender. After insolvency resolution, the builder’s obligation to service EMIs during the subvention period does not revive automatically unless it is specifically preserved in the NCLT-approved resolution plan. Since Indiabulls has assigned the loan to ARCE (ARC), ARCE legally steps into the shoes of the original lender. Your EMI liability, going forward, will be payable to ARCE, but only after they formally notify you of the assignment and provide the necessary documentation. You should not start paying EMIs merely on oral demands. Before making any payment, you must insist on the following documents from ARCE in writing: – A formal loan assignment / transfer intimation stating that your specific loan account has been assigned to ARCE – A copy of the Deed of Assignment or a certified extract confirming inclusion of your loan – A revised loan statement showing principal outstanding, interest, and EMI schedule post-resolution – Written clarification on treatment of EMIs paid or payable under the subvention scheme, i.e., whether the builder-paid EMIs (if any) have been duly credited – Updated repayment instructions, bank account details, and loan account number of ARCE As far as the EMIs which the builder was supposed to pay under the subvention scheme are concerned, those are now part of the builder’s insolvency claims. If the builder defaulted in paying those EMIs earlier, your lender’s remedy was against the builder, not against you for that past period, unless your loan agreement specifically makes you liable in the event of builder default. Practically, after NCLT resolution, lenders generally do not recover past subvention EMIs from buyers, but this must be verified from your individual loan agreement and the resolution plan. If ARCE demands immediate EMI payment without giving the above documents or without clarity on past subvention adjustments, you are well within your rights to seek written clarification and temporarily withhold payment for a reasonable period. This should be done through email or legal notice so that no adverse inference of wilful default is noted. You should also obtain a copy of the NCLT resolution plan or at least the relevant extract dealing with homebuyer loans and subvention schemes, because that document governs the post-resolution liabilities of all stakeholders.

Advocate Yuganshu Sharma LawRato

749 votes

Lots of Subvention scheme matter especially with regard to Indiabulls is already pending before the Supreme Court in which CBI inquiry is being conducted at present. Share me the details of your case and whether it was a tripartite agreement, linked with various stages of construction.

Advocate Namita Kumari LawRato

851 votes

Seek written intimation from ARCE about loan assignment, outstanding, EMI schedule and subvention terms. Pay EMI only to ARCE after confirmation. Claim builder-due EMI adjustment as per subvention/NCLT order.

Advocate Pankaj Bajaj LawRato