ISLAMABAD: The Supreme Court of Pakistan on Thursday rejected a plea against the Financial Institution (Recovery of Finances) Amendment Act, removing a major obstacle in the way of the Naya Pakistan Housing Programme.
The court, while rejecting the plea, termed section 15 of the act according to the law.
Leading the bench hearing the case, Chief Justice of Pakistan Justice Gulzar Ahmed also scolded the applicant over filing the plea.
“You people do not return the banks’ money and have now come here to challenge the law,” the top SC judge said as section 15 of the financial institutions act permits banks to auction the property of a person in case of non-payment of loan dues.
The pending appeal at the apex court hindered the process of bank financing for the Naya Pakistan Housing Project as no bank was ready to finance the project before the court’s decision.
In July this year, Prime Minister Imran Khan announced that the federal government will provide around 0.3 million subsidies on each house to be constructed under the Naya Pakistan Housing Programme.
The premier made the announcement for allocating Rs30 billion funds for providing subsidy on the construction of each house under the Naya Pakistan Housing Program (NPHP).
This is an excellent decision of CJ, this will ease life not only of financial institutions but also of genuine buyers. Ultimately economy will strengthen.
Section 15 was prevalent for a few years before as well (early 2000s), but the borrowers have had the option to go to the High courts. Therefore, it is necessary to raise the status of Banking courts to the level of High courts for financial & banking matters to decide on defaults etc. As otherwise, the foreclosure laws are very weak in the country.
A bad decision, people who have usurped Bank monies are not part of the masses. this is a draconian judgment, to benefit the capitalists and that 2% already in control of 90% of the country’s economy.
When you get a loan have to pay it back