3rd party financial firm problem after builder sold the flat


I have booked an apartment in bangalore in 2013 and in 2016 it got registered. 

My builder handed over the keys to me last year without providing any OC.

It seems my builder and a financial firm got in to an agreement and builder received around 39 crores. 

Last week in the newspaper the financial firm put a notice stating that the builder is not paid the money to them in the agreed period.

Also many flats were pasted with the notices stating that the property is mortgaged with the financial firm.

My query :

1. Is it valid to mortgage a flat once it is sold to some one ( Yet to register )

2. Are we legally bind and need to agree what the financial firm says?  since the builder got into an agreement with them

3.  What is the status of the buyers irrespective of the flat is registered or not.  

4. Do we really required to get any sort of NOC from the financial firm if the buyer want to register the flat?








In your case it seems the flat has been registered in 2016. If the builder had mortgaged the flat before 2016 then at the time of registration you would have been asked for NOC from the financial firm. Kindly verify the same. If the mortgage is after registration of the flat then you don't have to worry. Your flat cannot be attached for any of the dealings between the builder and the financier. The unsold flats can be sold only after getting NOC from the financier.

Dear Mr.Ranganathan Sir,

Thanks for your reply.   Your reply gives me some sort of releif as my flat is not mortgaged and already register before builder mortgaged. 

But  my friend who also booked in the same project later and the flat is yet to register( since it is not yet fully complete)..

His flat has been marked as mortgaged to the Fincial firm.( A Notice has been pasted in the flat door )

What we need to do in this situation?  I mean What will happen to the Flat and When can we expect the flat handover?

AOS is with the builder and not with any other 3rd party and is it possible or leagal to mortgage the flat to a Financial firm ?

Do we need to file a FIR or any sort of notice needs to be sent to the builder ?




Kindly ask your friend to query his problem and the particulars to answer properly.

Dear Ranganathan Sir,

Situation : His flat is mentioned as Mortgaged by the builder to the Financial Firm and Not yet Registered.

His query is what is the next step he needs to take?  What is his position now due to this problem?

What is the process which he need to follow now on.






ha21@rediffmail.com Mumbai : 9820174108

1. You can file a Police FIR, requesting investigation and charge-sheet, for offences like Conspiracy, Threatening, Cheating, Intimidation, Fraud, Breach of Trust, Mischief etc.... against the Builder and the Financer, supported with all relevant supporting Documents, Evidences & Witnesses.

2.  IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet.  The said Person may come down for settlement.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com



Dear Hemant Sir,

Thanks for your reply.

Are you saying whether the flat is registered or not, do we need to file a FIR?

Yesterday our builder sent a below mail to all the buyers.  In that they mentioned FEW units of project has been mortgaged to xxx

But actually out of 304 units 180 units were in the list of mortage.  

Greetings from CPIPL,

We completely understand your concerns but as most of you are aware that, over the last two years, the Real estate market has taken the biggest hit / downturn overall due to various reasons like GST, NGT and RERA implementation, etc., due to which, there has been a major setback on sales and collection performance in the company, which has drastically affected our projected cash flows as well as severely impacted on working capital crisis.

As a result, we have encountered many challenges on overall revenues of the company. Due to low sales & collections over the last many months, the company has not been able to make timely payments to Banks/FI’s as committed, which has apparently led our Loan account become NPA.

In the interest of the project and the customers, CPIPL Management is constantly discussing with xxx and trying to resolve the issue amicably between both of us.  CPIPL has also given comfort to xxx by giving additional securities, which is valued very much higher than the loan amount.

During the course of discussion, the xxx has initiated legal action and affixed notices at commune site, though it is very clear that only FEW units of project has been mortgaged to xxx. CPIPL has stopped the registrations for the time being till the matter gets resolved with xxx.

Please be rest assured, that in the interest of the project and its customers, CPIPL is trying hard ad putting its time and efforts to resolve the matter amicably in win-win situation and till then, we request all our customers to kindly bear with us for some time and not to get panic in this given situation.

Parallelly, we have strongly objected on xxx as to how they have affix the notice at Commune site and also denied the stand of holding the registration of units when the units that are not mortgaged to them.

Once again we request all customers to support us and not to get panic or restless, as we are in the process of resolving the matter with xxx which might take some time. Kindly bear with us.








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