Refer Supertech Limited v. Emerald Court Owner Resident Welfare Association [2021] GCtR 1990 (SC) to understand the aspects that banks and borrowers should keep in mind when dealing with loans for residential properties.
An unregulated construction materially affects the right of enjoyment of property by persons residing in a residential area, and hence, it is the duty of the municipal authority to ensure that the area is not adversely affected by unauthorized construction. Even Statutory bodies like NOIDA have to follow the Acts and there is no principle that government bodies are exempted from the provisions of law. It was imperative for the public authority to not only demolish unauthorized constructions but also to impose a penalty on the wrongdoers involved. Property in this case was directed to be demolished and amount to be refunded to buyers.
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