If bank has released payments without each time obtaining consent of the borrower, then bank is at fault. In addition, bank has to get certificate from approved civil engineer about progress and value of constuction level before releasing amount with consent of borrower. Bank officer is also required to visit site and verify progress of construction before releasing further amount. Hence pl lodge detailed complaint with Nodal Officer at Head Office of the bank. If it is a public sector bank, file RTI application for getting all inspection reports and authority letter of borrower for releasing payment to builder. Pl visit my files on How to manage problem with the bank at
U can also refer my articles on RTI at above link for filing RTI application.