Proven - Focus on (re)funding the (erring) Developers was ill-placed

The intelligentsia has been agog with demands of leniency, structured mechanisms and statutory sops to the Developers who are out of money and hence need to be funded to complete the construction of their projects.

The demands have included providing easy funding to NBFCs without an equally vehement appeal on adequate auditing and quality check of their lending, including the negligible, if any, steps taken by many of the NBFC officials to recover the secured loans that have not been serviced for more than a year. A re-calibration of the loan, often accompanied by further extension of the same loan account, has been the order of the day.

The demands have included easing liquidity through other financial instruments, again without assessing the pros and cons of the same.

Recently, (April 2019), Hon’ble Supreme Court stayed NCLT proceedings against 76 Developers. These home buyers had paid 60%-90% of the money and were in the waiting for 6-10 years, with the construction still far away from completion. 76 Developers (a drop in the ocean!) got an olive branch and laughed all the way as the home buyers held demonstrations at the sites and outside the premises of the MDs. (Ref https://ibcode2016.com/?p=7089)

With the July 2019 verdict, the judicial activism of the largest democracy of the world has come to the rescue of the largest suffering segment – the home buyers. Kudos. Courtesy the Hon'ble Supreme Court Judgement in Amrapali, the new Way Forward is "Confiscate, sell and fund" the construction is the new benchmark. The MDs, Directors et al of the Owner driven Developers deserve to be ripped of all their ill gotten wealth from the middle class segment whom they have exploited to the hilt and funded their fleets of Mercs and Rolls Royces.