Delhi High Court - Orders
Parveen Kumar And Anr vs Union Of India And Ors on 19 March, 2026
Author: Jasmeet Singh
Bench: Jasmeet Singh
$~72
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 3526/2026
PARVEEN KUMAR AND ANR .....Petitioners
Through: Mr Ratnesh Sharma, Adv.
versus
UNION OF INDIA AND ORS. .....Respondents
Through: Ms. Radhika Bishwajit Dubey CGSC,
Mr. Harshavardhan Jha GP, Ms.
Gurleen Kaur Waraich and Mr.
Kritarth Upadhyay Advocate
Mr Rohan Kochhar & Mr Abhishek
Yadav, Advs. R-2
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
ORDER
% 19.03.2026 CM APPL. 17041/2026
1. Exemptions allowed, subject to all just exceptions.
2. The application stands disposed of.
W.P.(C) 3526/2026
3. This is a petition filed under Article 226 and 227 of the Constitution of India seeking the following reliefs:-
"I. Issue an appropriate writ/order/direction in the nature of Mandamus or any appropriate writ restraining the Respondent Bank from initiating any legal proceedings or taking any coercive measures against the Petitioners for recovering any of the loan amount directly disbursed to the Respondent This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/03/2026 at 20:32:28 Builder in violation of statutory guidelines issued by the Reserve Bank of India and National Housing Bank; and II. Issue an appropriate writ/order/direction in the nature of Mandamus or any appropriate writ to the Respondent Bank for reframing Petitioner's CIBIL scores and for issuing No Due Certificate in accordance with law; and III. Issue an appropriate writ, order or direction in the nature of Mandamus or any other appropriate writ directing the Respondent Bank not to recover any of its claims towards the purported dues of alleged interest amount in relation to the said housing loan facility from the Petitioners, and further directing that no recovery of the principal amount be effected until the Petitioners receive physical possession of the unit from the Court Receiver; and IV. Issue an appropriate writ/order/direction directing the Respondent Bank to refund the Pre-EMIs/ EMIs paid by the Petitioners to the Respondent Bank and recover the same from the Respondent Builder; and V. Issue an appropriate writ/order/direction to the Respondent No. 1 and 3 Authorities for initiating strict action against the Respondent Bank for violating the statutory rules and guidelines and circulars and frame guidelines in this regard; and/or VI. Pass any such further or other orders as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case; and principal amount be effected until the This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/03/2026 at 20:32:28 Petitioners receive physical possession of the unit from the Court Receiver; and IV. Issue an appropriate writ/order/direction directing the Respondent Bank to refund the Pre-EMIs/ EMIs paid by the Petitioners to the Respondent Bank and recover the same from the Respondent Builder; and V. Issue an appropriate writ/order/direction to the Respondent No. 1 and 3 Authorities for initiating strict action against the Respondent Bank for violating the statutory rules and guidelines and circulars and frame guidelines in this regard; and/or VI. Pass any such further or other orders as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case; and VII. Order for costs in favor of the Petitioner".
4. The Petitioners are homebuyers. Respondent No. 1 is the concerned Ministry of the Government of India responsible for housing and urban affairs. Respondent No. 2 is the bank into which Andhra Bank came to be amalgamated, which sanctioned the housing loan to the Petitioners. Respondent No. 3 is the regulatory authority and respondent No. 4 is the Builder (now under Court Receiver) responsible for completion of the project.
5. The petitioners booked a residential unit bearing No. Y-0403 in the Amrapali Adarsh Awas Yojna project, Greater Noida on 31.12.2015 by paying a booking amount of ₹3,00,000. A Flat Buyer Agreement dated This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/03/2026 at 20:32:28 04.03.2016 fixed the total sale consideration at ₹41,31,400, with possession to be delivered within 36 months (extendable by 6 months). A housing loan of ₹33,00,000 was sanctioned by Andhra Bank on 02.08.2016, followed by execution of a Composite Agreement (05.08.2016) and a Tripartite Agreement (06.08.2016), under which the loan was to be disbursed strictly in accordance with the stages of construction and the property was mortgaged in favour of the bank. Pursuant thereto, an amount of ₹20,05,429 was disbursed.
6. On 08.08.2016, a Memorandum of Understanding under a subvention scheme was executed, whereby Respondent No. 4 undertook to service the pre-EMIs/interest till possession. However, in violation of the agreed construction-linked plan and applicable regulatory guidelines, the bank disbursed substantial amounts upfront to the builder without linking disbursement to construction progress.
7. The project was significantly delayed during 2016-2017, and the builder defaulted on its obligation to service pre-EMIs. Consequently, under pressure from the bank, the Petitioners were compelled to service the EMIs themselves to avoid coercive action. Despite this, possession of the flat has not been delivered within the stipulated period.
8. It is submitted that the builder is presently undergoing insolvency proceedings (CIRP). The petitioners have already paid approximately ₹27 lakhs from their own resources towards the flat, yet the project remains incomplete and possession has not been handed over. In light of the above situation involving delay in delivery of the possession of the said units and in order to secure interests of home buyers, several writ petitions came to be This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/03/2026 at 20:32:28 filed before the Hon'ble Supreme Court against the Amrapali Group of Companies wherein W.P. (C) No. 940 of 2017 titled as Bikram Chatterji & Ors v. Union of India and Ors came to be the lead matter.
9. Learned counsel for the petitioner, also draws my attention to Clause 88 of the Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021, which reads as under:
"88. Disbursement of housing loan to individuals linked to the stages of construction 88.1. Disbursal of housing loans sanctioned to individuals shall be strictly linked to the stages of construction of the housing projects/ houses and upfront disbursal shall not be made in case of incomplete/ under-construction/ green field housing project/ houses.
88.2. HFCs while introducing any kind of product shall take into account the customer suitability and appropriateness issues and also ensure that the borrowers/ customers are made fully aware of the risk and liabilities under such products.
88.3. In cases of projects sponsored by Government/ Statutory Authorities, HFCs may disburse the loans as per the payment stages prescribed by such authorities, even where payments sought from house buyers are not linked to the stages of construction, provided such authorities have no past history of non-completion of projects. 88.4. HFCs shall desist from offering loan products This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/03/2026 at 20:32:28 involving servicing of the loan dues by builders/ developers etc. on behalf of the borrowers.
88.5. HFCs shall have in place a well-defined mechanism for effective monitoring of the progress of construction of housing projects and obtaining consent of the borrower(s) prior to release of payments to the builder/developer. 88.6. HFCs while extending finance shall take into account the stipulations laid down under RERA, as applicable."
(Emphasis added)
10. Learned Counsel states that the respondent No. 3 would be covered by the above circular and also respondent No. 1 circular, NHB/ND/DRS/ Policy Circular No.96/2019-20 dated 19.07.2019, clause 4 of which reads as under:
"4. Further, reference is also drawn to the Circular No. NHB(ND)/DRS/Policy Circular No.75/2016-17 dated July 01, 2016 whereby HFCs were again advised that disbursal of housing loans should be strictly linked to the stages of construction and no upfront disbursal should be made in case of incomplete/un-constructed projects. It is reiterated that disbursal of housing loans sanctioned to individuals should be closely linked to the stages of construction of the housing project/houses. In cases of projects sponsored by Government/Statutory Authorities, HFCs may disburse the loans as per the payment stages prescribed by such authorities, even where payments sought from house buyers are not linked to the stages of construction, provided such authorities have no past history of non-completion of This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/03/2026 at 20:32:28 projects."
(Emphasis added)
11. A perusal of the aforesaid clauses, indicates that RBI cautions the banks not to disburse the entire loan in one go but do it according to the stage of construction.
12. Both the circulars have been given a total go-by by respondent No. 3.
13. The matter requires consideration.
14. For the said reasons, issue notice.
15. Ms. Dubey and Mr. Kochhar, learned counsels, accept notice on behalf of respondent No. 1 and 2, respectively, seek and are granted 2 weeks to file a reply.
16. Let notice be issued to the respondent Nos. 3 and 4 through all modes, including electronic, on the petitioner taking steps, within one week from today, returnable on 07.04.2026.
CM APPL. 17040/202617. This is an application filed under Section 151 of CPC, 1908 seeking ex-parte ad interim stay.
18. For the reasons stated in the application, issue notice.
19. Ms. Dubey and Mr. Kochhar, learned counsels, accept notice on behalf of respondent No. 1 and 2, respectively, seek and are granted 2 weeks to file a reply.
20. Let notice be issued to the respondent Nos. 3 and 4 through all modes, including electronic, on the petitioner taking steps, within one week from today, returnable on 07.04.2026.
21. For the reasons stated above, it is clear that the petitioner is prima- facie, a victim of collusion between respondent Nos. 2 and 3.
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/03/2026 at 20:32:28
22. Despite not getting a flat, the petitioner has paid a sum of about Rs. 27 lakh.
23. The actions of respondent No. 2 prima-facie, seem to be in violation of circular dated 19.07.2019 and Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021.
24. For the said reasons, I am satisfied that the petitioner has a prima facie case and the balance of convenience lies in favor of the petitioner and the petitioner would suffer irreparable loss and injury which cannot be compensated in terms of money, in case orders are not passed.
25. Hence, respondent No. 2 is restrained from taking any coercive action against the petitioner till the next date of hearing.
JASMEET SINGH, J MARCH 19, 2026/NG This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 26/03/2026 at 20:32:28