Will check funds misuse: Shirish Deshpande

The step initiated by NHB will protect interests of homebuyers, who were being tempted by subvention schemes floated by builders. Strict control on disbursement of loan amounts linked to the progress of construction work will check rampant misuse and diversion of funds for other purposes. There have been instances where borrowing homebuyers have had to pay penal interest as projects were delayed. NHB should, therefore, also ensure that the subvention agreement will find such conditions in it and homebuyers will not be unnecessarily penalised for builders' fraudulent practices in connivance with financing companies.

Shirish Deshpande, chairman, Mumbai Grahak Panchayat