vp (NA) 10 April 2014

Apartment purchase loan related

Dear Sir,

I have purchased an apartment at Gandhinagar, Gujarat. I have paid margin money. Based on that and construction status, the bank also has paid 80% of loan. Now, there is a rumor that the builder may become bankrupt. All the money paid to the builder are through cheques. Original receipt of the payments made are with the bank.

Now, before the final documents are registered for the property, if builder company officially declares itself bankrupt, will my right on the property and the money I have paid to the builder maintained? If no, is there a way to protect it? How?

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2 Replies

G.L.N. Prasad (Retired employee.) 10 April 2014

Immediately write a letter to the Bank seeking information on release of installments and ensure that Bank has paid installments only on the basis of progress of construction.If it is a Nationalised Bank, file application under RTI.(Central Govt., rules/Rs.10/- Indianpostal order in the name of Bank as RTI fees, no prescribed format is there just address to CPIO of that Bank, mention your loan account number and full address of thebuilding and borrower.

Do'not worry as you become a secured creditor, and the Bank may also claim preferential creditor treatment , as Tax dues and Bank loan repayments get a top priority, and as security is there.

Please produce entire correspondence to Advocate and seek opinion as to the builder has acquired good title to the property. Once it is sold to you, the property becomes your own as consideration was paid on a security. (Though, your Bank must have obtained legal opinion before granting housing loan, only for any loop holes, have a double check through your advocate.