Summary
- The Karnataka High Court has ruled that a homebuyer cannot be prosecuted for a builder's actions that violate an agreement simply due to an outstanding loan.
- The court quashed an FIR filed by the State Bank of India, citing a lack of evidence linking the borrower to the builder's sale of the apartment to a third party.
- This decision underscores the legal protections for homebuyers against liability for builders' misconduct.
- The ruling may influence future cases involving homebuyers and builders, particularly regarding contractual obligations and criminal liability.
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