Thousands of buyers who booked flats at Noida Extension are on tenterhooks. With the court's Sahberi verdict threatening to open floodgates of litigation, they are not sure whether their projects in the vicinity are safe. Now comes the double whammy. Most banks that doled out simple loans to buyers have started backing out.

Debjyoti Biswas, an executive at a private company, who booked a flat at an Amrapali project said, "I paid twenty % of the amount to the builder. For the remaining amount, I applied for a loan from LIC under the flexi-plan in December. In April, after finishing necessary paperwork, my loan was sanctioned. The cheque was supposed to be issued on Monday, but after the Supreme Court verdict, the bank has declined to release the money. Now I don't know what to do."

Bank officials claim the future of Noida Extension is dismal. In these circumstances, while buyers are in jeopardy, banks are hurriedly trying to withdraw funding. Now, buyers are in the lurch as they cannot buy the house, unless they pay up on their own.

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"The banks have started issuing notices & SMSes to get back their money. Historicallyin the past year, not of the banks ever called us regarding the status of the loan, but now they have been shooting SMSes often reminding about the remaining amount of the loan," said Ravi Garg, who has booked a 3BHK flat in a project.

Source: [TOI]