Legal Question in Consumer Law in India

Dear Sir,

I purchased a 3BR flat from a builder in Jan 2010 and got registerd in March 2010.

Including me, most of the flat owners loan was processed by LICHFL and loan was

sanctioned and disbursed to the builder.Now recently we came to know through paper

notice by Syndicate Bank that the land in which 80 flats were constructed is given

as collateral security to other venture of the same builder. Now as per Syndicate Bank

notice in paper, no one is supposed to do any transactions with the list of 50 mentioned

flats including mine.

Neither we were aware of the mortagage nor the builder revaled this to us and suprisingly LICHFL

is also saying that they too don't know about this. We believed that LICHFL has taken

care of verifying the title check but they failed to do so. We were cheated by the builder

and also by LICHFL and all the flat owners are concerned now how to proceed futher to retain

all of our flats.

Also when enquired with Syndicate Bank, we came to know that the builder had made an agreement with them and as per

the agreement he has to pay 6.25 L for each flat after registration to get NOC.

The builder has followed the procedure for 30 flats but failed to do for the remaining 50 flats.

Builder has gone to DRT and got stay till 14th May but he failed to pay the agreed amount and once again requested

for a weeks time saying that money is not adjsuted in short time. We aren't sure if he isn't going to pay or not.

Also we came to know that he may go for IP to escape from this issue!

Now, we are very much concerned about our flats and kindly let me know what set of actions we can take to retain our flats!!

FYI, all the affected flat owners have already decided following course of action:

1.Stop paying EMI's to LICHFL till we get NOC's to keep more pressure on LICHFL.

2.Planning to file a case in consumer forum.

Also I've few queries too.

1.Is LICHFL responsible for getting an NOC for each flat?

2.Can we sue or file a legal complaint on LICHFL for disbursing the loan to the builder w/o verifying the title check?

3.What actions we can take on the builder and Syndicate Bank?

4.Is there any guarantee that Syndicate bank won't auction our flats since it's a collateral security?

5. How can we protect or safeguard our flats? Kindly brief the steps in detail.

Thanks,

Sekhar


Asked on 5/18/12, 3:26 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

18.05.2012

Dear Sekhar,

To answer your queries -

1. LICHFL has erred in not getting the NOC clearance for each flat from the Builder.

2. Yes, suitable action may be initiated against LICHFL for their lapse as in point 1 above.

3. The Builder has knowingly concealed that he has offerred the land as a collateral to Syndicate Bank. You need to check whether this transaction has taken place prior to or subsequent to LICHFL granting the loan to you and paying the monies for your flat to the Builder. If it is later, suitable action may be initiated against the Builder and Syndicate Bank separately.

4. If the collateral of the land with Syndicate Bank has been done subseqent to LICHFL granting of the loan, the onus of failure to verify title deeds of the land shifts to Syndicate Bank. They cannot auction the flats already belonging to members.

5. Answered above.

You can mail me for any further on-line advice at [email protected]

Regards,

Read more
Answered on 5/18/12, 8:42 am
ranganathan raghavachari R.Ranganathan & Associates

I am sorry to tell you that this is not a small issue to be discussed in this forum. You will only get contradictory views and opinions for this. It is better for you all to jointly approach an experienced lawyer and get his opinion and act fast. You have to immediately get stay order against the Syndicate Bank before thinking of all other actions. Contact me at [email protected].

Read more
Answered on 5/18/12, 5:52 pm


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