Courts should yield to the wisdom of policy makers and refrain from exercising powers of judicial review in matters of economic policy.

JUDGMENT

Subramonium Prasad, J. This Hon'ble Court was pleased to convert a letter of one Sh. Vinod Kumar Naugain into the present writ petition, in the nature of a Public Interest Litigation. Through the letter, the Complainant before this Court seeks the issuance of directions to the Central Government to draft and implement a comprehensive scheme to address the grievances of home buyers availing home loans, including those buyers who haven't been given possession of their flats by their builders and are still paying monthly instalments towards EMI payment, and are thus unable to claim tax benefits on the payment of such monthly interest amounts. The Complainant prays for the formulation and implementation of a scheme that conclusively addresses the grievances of other home buyers who may not have the capacity to approach courts/forums to seek redressal against builders. The prayers, as sought for, are as follows:

"1. Grant full tax benefit 'from the date of payment of-first instalment of EMI to the Bank' to all those home buyers who have taken home loan from the banks but possession of their dream home is delayed due to the fault of the builder; or

2. Even if the project is not delayed, grant tax benefit 'from the date of payment of first instalment of EMI to the Bank' to all those home buyers who have taken loan from the banks;

3. Grant free legal aid to the home buyers who are fighting against the mighty builders and trying to save their hard earned money;

4. Frame a law where interests of the buyers are fully protected and errant builders are punished; and

5. Banks do not own responsibility though they sanction the projects. Frame a law and make banks accountable and when insolvency proceedings are initiated against any builder, buyers should get their share first out of the sale proceeds of the builders properties e a law and make banks accountable and when insolvency proceedings are initiated against any builder, buyers should get their share first out of the sale proceeds of the builders properties and not the banks as the banks should also bear such loss as they are solely responsible for financing the projects of the builders."

2. The Complainant alleges that the banks, government and builders operate as part of a nexus and operating against public interest, sans any accountability to the public for their hard-earned money. It is the Complainant's grievance that banks should be held responsible for the inordinate delay in real estate projects, inasmuch as banks only sanction loans for projects that are verified as genuine, after proper scrutiny.

3. The Complainant seeks to draw the attention of this Court to the plight of homebuyers insofar as there is often delay in construction and delivery of possession of flats and states his main concern for filing the present petition before this court is for issuance of directions to the government to formulate a comprehensive scheme for extending tax benefit vis-a-vis the payment of interest and principal amount of EMI as extends to those home buyers that have already gained possession of their dwelling units/homes. The Complainant has also alleged that the builders misuse the provisions of Insolvency and Bankruptcy Code, 2016, by resorting to declaration of insolvency in order to escape payment of dues to their creditors, who include home buyers and to this extent.

4. In compliance with an order of this Court in this petition dated the answering Respondent, Reserve Bank of India (hereinafter "RBI") filed Counter Affidavit in categorically responding to the grievances raised by the Complainant. The Counter Affidavit on record has also annexed master circulars issued by the RBI dated 01.07.2015, titled as "Master Circular -Loans and Advances - Statutory and Other Restrictions", and "Master Circular - Housing Finance", respectively.

5. The stance of the Respondent RBI in the counter affidavit is that borrowers including the likes of home buyers facing financial constraints may a