India’s housing dream has turned into a financial horror story. Over 4.3 lakh homebuyers are trapped – paying EMIs for homes that may never be built, victims of a broken system where builders disappear, banks wash their hands, and the government delivers too little, too late.
“Buying your own home,” writes CA Meenal Goel, “is no longer a dream – it’s a nightmare.”
The trap begins with a seductive lie: “No EMI till possession.” Under this subvention scheme, the buyer pays just 10% upfront, the bank disburses 80% of the loan, and the builder promises to handle EMIs for two to three years. But if the builder defaults – and many have – the full financial burden falls on the buyer.
“My friend pays ₹45,000 in rent and ₹32,000 in EMI every month – for a house she may never get,” Goel shared on LinkedIn, reacting to a Reddit post that’s struck a nerve across India’s middle class.
And this is no isolated scam. According to industry data, there are 5.08 lakh stalled housing units across 42 Indian cities – a 9% jump since 2018. The epicenters: Mumbai, Noida, Gurugram, Thane, Greater Noida. In these Tier-1 cities alone, 1,636 projects – covering over 4.3 lakh homes – are in limbo. Families that booked flats when their children were in school are now watching them graduate – still without keys in hand.
“The loan is in your name, not the builder’s,” Goel warns. “If they default, the bank still comes after you. Even if the house never gets delivered. Miss an EMI? Your credit score takes the hit.”
While the government touts the SWAMIH Fund – which has completed about 50,000 units and targets 40,000 more by 2025 – that’s less than 20% of the total backlog. And for most buyers, there is no compensation, no legal relief, no regulator on their side.
“This isn’t just a real estate crisis,” Goel says. “It’s a systemic failure of project financing and regulatory oversight. Subvention schemes like ‘No EMI till possession’ need urgent reform.”