NHB gets RBI approval for $200 million ECB for Affordable Housing

NHBgets RBI approval for $200 million ECB for Affordable Housing

Reserve Bank of India   has approved the proposalof National Housing Bank for raising $ 200 million external commercial borrowing which will be used for financing affordable housing. The Chairman and Managing Director, NHB, Mr. Verma has said that the housing finance regulator has to mobilise this amount before the current fiscal i.e., before March 2014. After finalisation of the terms the NHB has to once again approach the RBI since the funds are being raised under the approval route.

The chairman has further said that they are in talks with only one foreign lender for raising this amount. NHB’s resource base will be diversified on raising funds through ECB route and will generate confidence among international investors in the Indian housing finance market.

NHB has found a new thrust area in Low-income housing and last year has slashed refinance rates on loans up to Rs.5 lakhs. The Government is also encouraging housing financing companies by allowing them to raise ECB’s for low-cost housing projects. The housing banks and housing finance companies are included as eligible borrowers for financing low-cost projects.

In Maharashtra a District ConsumerForum has held that not executing a sale agreement and handing over possession of a booked flat, inspite of receiving a substantial part of the payment, amounts to deficiency in service on part of the developer. The forum has directed the defaulting developer to pay a compensation of  Rs.50,000. The additional Thane district consumer forum has also ordered the developer to hand over possession of the flat within 45 days, to ex-serviceman Balaji Shinare, in the building constructed by the builder at Kamothe in Navi Mumbai.

The developer had promised the complainant the he would execute a sale deed for the flat, but failed to do so and had tried to register a sale deed for the said property in another person’s name.

The complainant in his complaint had alleged that he had booked the flat in October 2010 by paying booking amount of Rs.3.1lakh, the total cost being Rs.15.49 lakh. He had agreed to pay the balance consideration amount in 12 instalments. Upto April 2011, Shin are had paid Rs.9.2 lakhs and the developer had promised to execute the Sale Deed of the flat in that month itself. The complainant a retired Air Force personnel was ready to pay additional amount of Rs.90,000/- towards stamp duty and registration charge. He had also paid another instalment as demanded by the developer.

The developer allegedly did not execute the sale deed and ignored the repeated requests of the complainant. Shinare went to the sub-registrar’s office at Panvel to find out the status of the flat. He learnt that the developer had registered the sale deed for the flat in some other person’s name.

Aggrieved by this he approached the consumer forum in March 2012. The developer failed to respond to the notice issued by the forum. The forum decided the case on the basis of documentary evidence submitted by the complainant and held the developer guilty of deficiency in service for failing to complete the transaction, hand over the ready flat, despite receiving substantial consideration.

The court also directed the builderto execute a sale deed in favour of the complainant, who will  pay the balance amount while taking possession of the flat. The forum further directed the developer to pay compensation  of Rs.50,000 to Shinare for the mental agony suffered by him.

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