New Delhi, Oct. 27 -- The Karnataka High Court quashed criminal proceedings initiated by the State Bank of India (SBI) against a Mumbai-based homebuyer who halted his home loan EMIs upon discovering that his builder had illegally sold his allotted flat to a third party.

Delivering a key ruling on borrower rights, the court observed that an outstanding financial liability cannot automatically be treated as a criminal offence.

According to an Economic Times (ET) report, in the financial year 2019-20, Mr Bari took a Rs.39.92 lakh home loan from SBI to purchase a flat (B-306) in Bengaluru's Grandeur Park project. He reportedly signed a standard tripartite agreement with the bank and the developer on 8 February 2020.

Because he lived in Mum...