RBI/2007-2008/138
DBOD.BP.BC..No. 33/08.12.01/2007-08
September 17, 2007
To
The Chairman and Managing Directors /
Chief Executive Officers of all Commercial Banks
Dear Sir,
Housing Loans - Orders of the Delhi High
Court -
Writ Petition by Kalyan Sanstha Welfare Organisation against
Union of India and Others - Implementation of Directions
Please refer to our circular
DBOD.Dir.BC.No.43/08.12.01/2006-07 dated November 17, 2006 on the
captioned subject.
2. It has been brought to our notice by the
Monitoring Committee(constituted by Hon'ble High Court of Delhi
regarding unauthorised constructions, misuse of properties &
encroachments on public land) that some of the banks and financial
institutions are extending home loans without complying with the
instructions of the Reserve Bank of India contained in the above
circular. A copy of the
Monitoring Committee's letter addressed to Government is
enclosed.
3. We, therefore, advise you to ensure that all
the branches of your bank meticulously adhere to the instructions
contained in our circular dated November 17, 2006, referred to
above.
Yours faithfully,
(Prashant Saran)
Chief General Manager-in-Charge
MONITORING COMMITTEE
(Constituted by Hon'ble High Court of Delhi regarding unauthorized
Constructions misuse of properties & encroachments on public land)
M.C. Primary School Complex,
Lajpat Nagar-III, New Delhi-110 024
Tel 29840940, 29840068, Fax 29840991
D.O.No.F01/RBI/07-08/MC/D-2743
Dated 13.8.2007
Dear Shri Mitra,
Please refer to our telephonic conversation and
your D.O. letter No.7(26)/ 2006-CP dated 24.11.2006 regarding the
instructions issued by you to the Reserve Bank of India to all
scheduled commercial banks vide letter dated 17th November, 2007
for compliance of the directions of the Hon'ble High Court of
Delhi regarding issue of Home Loans by the banks on certain
conditions.
The Hon'ble High Court had ordered on 12th
October, 2006, as follows:-
'We hereby direct that henceforth Banks will
check whether the loan sought for is for authorized structure or
an unaurhorized structure and the banks will obtain an undertaking
on an affidavit from the parties seeking such loans that the
building is constructed as per sanctioned building plans. Banks
shall also ensure that the sanctioned building plans are attached
with the undertaking. Let necessary directions be issued in this
regard either by the concerned Ministry of Banking or the Reserve
Bank of India.'
It is informally learnt (subject to
verification) that private banks are still giving Home Loans
without keeping in mind the instructions of the Reserve Bank of
India based on the orders of the Hon'ble High Court. As a measure
of abundant precaution you are requested to ask the Reserve Bank
of India to convey the directions issued earlier (to scheduled
banks) to the private banks also and other financial institutions
for necessary action. A copy of the instructions so issued may be
sent to the Monitoring Committee.
With regards,
Yours sincerely,
(B.L. Vohra)
Sh. P.P. Mitra
Economic Advisor
Ministry of Finance
Deptt. of Economic Affairs
(Banking Division)
Government of India
Jeevan Deep, 10, Parliament Street
New Delhi-110001.
