Anuj Chadha 24 January 2018

Builder became defaulter of bank

I have booked a flat in a new residential scheme in Ahmedabad in 2012. I paid my full amount to builder in cheque. I did not take loan from any bank. I have legal possession of the flat and also have legal documents registered in my name. Builder took a loan of Rs 20 crore from a Nationalized bank. He repaid the loan as his most of the flats were booked in a short time and he again took the loan of same amount on the same construction project. He did not pay the loan and stopped paying Installments in August 2016. Bank has given a POSSESSION notice in newspaper to warn buyers not to make any transactions with the builder. Bank has also approached DRT for the recovery of loan amount.

When I went to meet Bank officers, they asked me to pay some part of loan i.e. 20crore/400 flats = (5 Lakh + interest) = 6 Lakh Rs for No Objection Certificate from Bank. Bank has also given NOC to few flat owners. Builder is not traceable. We have to complete pending construction work by ourselves. Bank managers have also warned me that my property will be auctioned in near future, if I don't take NOC from bank.

I don't want to pay any extra amount for NOC as I have made full payment to builder and still work is pending, which we are completing from our pockets.

Any legal advice, which can get me justice in my favour as soon as possible without much problems.

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3 Replies

G.L.N. Prasad (Retired employee.) 24 January 2018

Contact Advocate and explore ways for filing writ mandamus against the Bank restraining them against proceeding innocent buyers for dues/defaults of buyer.

R.Ramachandran (Advocate) 24 January 2018

When you say, Builder took a loan of Rs 20 crore from a Nationalized bank.

Please indicate when did he take that loan? Whether before the selling that flat to you or thereafter?

He repaid the loan as his most of the flats were booked in a short time. How do you know? What proof you have?

He again took the loan of same amount on the same construction project. How Do you know? When did you come to know about this?

When [date] was the Registration of flat was done in your favour?

Kumar Doab (FIN) 26 January 2018

Has your builder supplied you any cost sheet on IT’s letterhead under proper seal/signature, showing service tax, VAT with clear division/breakup on cost of Land, cost of material, cost of construction/labor charges etc ……….as applicable in the state!

If yes, this also should be examined by a very able counsel……………..for being as applicable in the state… as on date of booking thereafter…..etc !

There are endless number of threads at LCI also on allurements and getting fleeced by builders, postors impostors posing as some ‘Chief Lawyer/Consultant’ (actually LIAR) , advertising unknown firms as Law Firms ( LIAR’s firm) actually copycats, Nakalchi, free mongers ( Mufatkhora) and pasting copies and self invented Blah blah……………..nothing else and paste photo of very sick and old looking entity and changing it frequently with various poses…………..

You can also post at group website of LCI ; CAClubindia….