EMI on illegal flat/floor - Valid ??
Vishal
(Querist) 12 November 2017
This query is : Resolved
Hi All, my name is Vishal.
I have a query on payment of EMIs on illegal floor that is constructed by the builder.
I have purchased a flat in 4th floor in Bangalore. After I got to know that 4th floor is illegal, I stopped playing EMI to a nationalised bank from where I have taken the loan. And have sent multiple emails to the bank and the builder to provide a BBMP approved copy if the floor is a legal one. Both have not replied.Now, the builder is absconding and bank is also not responding properly . The bank has told me that you have requested for the loan and we have given the same to you. You should have checked that issue before purchasing ( Pls note, the bank has charged legal fees for me before proceeding the loan).
So, my query is - Am l still liable to pay EMI if BBMP has not authorized to construct the 4th floor ? And in the absence of 4th floor approval from BBMP, does the bank still holds an authority to auction my incomplete flat as I have not paid EMI from many months?
rajeev sharma
(Expert) 14 November 2017
you made an application of loan to the bank. You provided bank documents for examination of the title of the property. Then how the bank may be held responsible for the fraud committed by the builder . If you fail to pay EMI the bank may recover that from you and your guarantor. The law acts on the principle of buyers beware. It was your duty to ask complete details of the building approval from the builder. If you had asked and the builder had divulged some wrong information you may bring criminal proceedings against him
Rajendra K Goyal
(Expert) 14 November 2017
Bank deal in the money not in the property. You have taken loan, you are liable to pay. Any discrepancy in the property is to be dealt by the builder not by the Bank. If you do not repay the loan, Bank has right to recover from your other property also if the mortgaged property is not enough to liquidate the loan. Please read your agreement with the Bank.
Payment of Bank legal charges does not held Bank liable, legal report is based on the documents provided by you.
Better discuss with your lawyer and file complaint with the consumer forum.
