Legal Question in Real Estate Law in India

Hi,

Three years back, I booked a flat in an upcoming projects in Rudrapur (Uttaranchal), India with a builder for investment purpose. I was confirmed the possession by Oct'09 but it is not mentioned in the agreement. I had taken 11.5 lacs INR as loan from a nationalize bank and bank disbursed all the amount to the builder straightaway. Also in the agreement no terms or condition is in my favor. Nothing is mentioned about the refund on cancelation of the booking.

But, till date out of nine towers planned only one is constructed and that is too not complete. Construction was stopped by some local administration one and a half year back due to some issues, the builder won the case and got all the approvals again in sep'09. Now he says that he is not having funds to complete the construction and looking for an equity partner. And he is not ready to make any promise of the possession date.

I am in a very bad situation now. I dont want to pay the loan EMIs because I can see that I will never get this house and the builder is a fraud.

Please suggest what should be the right course of action under this situation. I have sent all the documents to ICRPC and they will send a legal notice to the builder in end of the Dec'09. Should I file the case with Economic Offense Wing or with consumer court?

Is bank also responsible in this case, disbursing all the amount to the builder in one shot, as I have read on bank's site that the bank disburse the amount in 4 or more installments to the builder. Can I take some action against the bank and stop the EMIs?

Any help will be much appreciated.


Asked on 12/07/09, 11:45 pm

2 Answers from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

in the present situation, it is advisable to approach the consumer court and file a complaint against the builder. the court would give appropriate orders as there have been numerous cases where the possession was delayed by the builder and the court intervened.

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Answered on 12/08/09, 12:02 am
Shrichand Nahar S.V.Nahar, Advocate

When one see only the Roses and not the Thrones, such situation arises.

Normally, Banks take authorisation from the borrower for entire disbursement to builders at time of processing and sanction of loan - Check documents between you and bank.

What is ICRPC is not understood.

If any offence is made out, one can invoke criminal law.

If there is any deficiency, one can also approach Consumer Forum.

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Answered on 12/08/09, 12:06 am


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