India, Jan. 28 -- Ramana Iyer, a resident of Mumbai's western suburbs, said the proposed redevelopment of his 40-year-old building has hit a roadblock as one member has an outstanding home loan of Rs.45 lakh. According to Iyer, the homeowner has been unable to obtain a no-objection certificate (NOC) from the bank since the loan remains unpaid and is also not in a position to clear the dues upfront.

In older buildings, the likelihood of homeowners having an outstanding home loan is relatively low. However, there may be instances in which apartments in 25-30-year-old buildings were purchased in the resale market with home loans.

While some developers are willing to provide financial assistance to help such members settle their loans, many...