1) Bank is interested to recover their funds , Generally while signing documents with bank person sign them without thinking and bank also insist that this document is cleared by their legal dept. and hence apart from this they don't have other option . In all their documents they keep some kind of clause for such unfortunate circumstances and that clauses are in favour of the bank. This myself telling without examining any document.
2) Now you are facing the two-sided problem. At one end bank and another end Flat/builder.
3) First don't invite bank problem for some time, continue paying them immediately. Second, send the required bank document for legal analysis with person specialized in banking matters
4) Second immedately start criminal proceedings against that builder , filing of FIR is not like going in ticket counter and getting ticket , local police station in reality will do time pass , Catch proper Adv. who can assist you in doing proper formalities
5) Third start civil proceedings too, as Retired Hon. Judge stated above
6) Fourth try to meet some senior Police officer who can speed up the investigation, goal is to track first that builders relative then him. He will run that is sure , but they can track them via their soft links like relatives, etc. because my little experience which I saw they get criminal not directly but indirectly this is their habit of the police dept. means they may detect their close relative , friends , well wisher and then from their link they catch such people , or they can jot down his modus operandi and instead of going behind him they can analysis where next he can do crime their they may try directly.
7) Fifth after analyzing the bank document which you signed you may think and try to make a one-time settlement with the bank, These powers are with higher up of the bank. Means stress asset bank some time enter into the one-time settlement, in another case bank officer itself approached party for settlement because they were sure to lose the money, still, the party was not interested to settle stating let the law take its own course, and bank officers were losing their hope of recovering money. But in your case bank will try to recover money from you and this will be difficult so better try for one-time settlement with bank , you can contact some person specialized in banking, DRT matters
