I purchased a flat in Ahmedabad (infact only "Agreement to sale" is executed at the moment).
When I paid margin money and applied for a loan from IDBI bank, my loan was rejected with below reason.
"There were only 2 flats permitted on each floor and builder has constructed 5 floors so building is NOT constructed as per approved plan"
Below are some facts about that property
1) Society is formed and property is occupied for 14 years
2) Share certificates and allotment letters have been issued by society.
3) There is NO completion completion certificate / occupation certificate / Building usage permission.
4) There is NO amended floor plan.
5) Society members are paying property taxes / municipal taxes.
6) Plot on which building is constructed is legal.
Need your guidance what should I do in this case - Is it advisable at all to go ahead and apply to some other bank to see if they approve loan (What may be consequences in future)? If NOT, can we file a case against owner for NOT informing about this issue if owner does NOT return money we paid?