HC quashes FIR against homebuyer for unpaid EMIs
In a recent ruling, the Karnataka High Court dismissed criminal charges brought against a homebuyer named Mr. Bari for failing to pay his home loan EMIs after the builder sold the flat he had booked to another buyer. Mr. Bari, a resident of Mumbai, had taken a Rs 39.92 lakh home loan from the State Bank of India (SBI) to buy a flat (B-306) in the Grandeur Park project in Bengaluru.
He had signed a tripartite agreement with the bank and builder and continued paying the EMIs even after the builder sold the flat without his consent. However, SBI filed criminal charges against both the builder and Mr. Bari alleging financial losses. The court quashed the criminal case on September 25, 2026, noting that the outstanding loan or failure to complete the project alone cannot be considered criminal.
The court emphasized that SBI should have acted with due diligence before filing criminal proceedings.
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