- This topic has 66 replies, 36 voices, and was last updated 1 year, 4 months ago by
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UHello all,
I bought a flat in Bangalore in 2022.
The builder was supposed to deliver the flat in September 2023 but it was delayed. The 6 month grace period by RERA is also expired.Now the RERA for the property has expired and builder has abandoned the construction and there is no future delivery visible.
I took a loan of 60 Lakhs from SBI, I paid all my EMIs on time till March of 2024. Since then I am not paying EMIs since I am not getting the house.
I have been continuously talking with Bank and Builder but no help. The bank recently sent me a legal notice regarding the same.
I am not sure how to handle this situation. I do not want to keep paying the EMIs for a lost cause and I want the builder to be liable to pay the bank since they did not deliver the property.
Can somebody with legal knowledge please suggest what should be my next step here?
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AHave you asked the bank, why they haven’t filed Insolvency?
Is the account declared NPA? Sec 13 notice etc are given by the bank?
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PIf your earnings are not impacted, you should not stop the loan, the contract with the bank is separate. If possible pls revive the EMIs and regularise the loan, I can understand your frustration, but either you have to go to RERA or to Consumer Court. Make both the builder and the bank a party to this case.
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UMy earnings are definitely impacted. I have to pay rent as well as emi which is very. My plan was to move to this house so I don’t have to pay rent.
Since my mother lives with me I can’t go to a PG. I am renting a flat and this EMI becomes a big financial burden.
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UI had it checked, the builder has pending cases worth 1 lac crore. My mistake was I didn’t do my due diligence while buying it since the property was referred by someone I trusted.
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HIs conciliation process done before RERA? RERA takes on an average 2 years to decide matter due to huge pendency but they will only give you dates when your matter will actually be heard & there will be progress, so its better than other courts in that regard. No unnecessary hearings where your matter does not get heard.
But keep track if the Builder has gone in Insolvency. If builder is under-going insolvency proceedings then you would need to file claim before the IRP or Liquidator.
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BMan, you could have done little research and buy ready to move in flat. Everyone tells to avoid under construction flat. It’s literal first advice anyone will tell you
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BThat’s the trap. Rara doesn’t have execution powers. So it’s basically toothless.
There are builders who are offering 80:20 plans. 20% upfront and 80% after possession. These are also traps. Never touch under construction flat
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USorry to hear this – this damn building – I remember these property agents hounding and chasing me here in the UK to buy a flat there – I almost booked one but they were rushing through the documents about some tripartite agreement for EMI, that I backed out as I thought it sounded too good to be true. Thanks to those useless sales reps and their tactics.
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UYou’ll come through ok – just stick to fighting it out come what may – given it’s a lot of people in this scenario RERA will have to act which they don’t otherwise as it’s filled with people in top positions who have vested interests – this is the primary reason I don’t have an apartment yet; because after listening to price and their tactics, I always get into a verbal fight with the sales people.
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BDid you buy a resale property or in any new phase?
I believe this project was initially planned to be delivered in 2017 and got delayed royally.
Also.. as I read in news ..defrauded buyers have formed an association and have filed lawsuit against both builder and bank.
Are you part of that association? If not get yourself added.
Second: Legally you have no remedy unless NCLT steps in and starts recovering dues..even with that.. u as investor are low in priority chain..that means if they recover money from builder..first banks will get their part , then businesses and then if anything is left ur no will come.
Right now plz focus on following things:
1) join the association to reduce your legal cost.
2) Reduce your EMIs , but don’t default. Unfortunately there’s no legal remedy.
3) Talk to lawyers/CA who specialize in financial disputes and figure out how to reduce your EMI burden w/o screwing up your credit score.-
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BI am not a lawyer.. but as per my understanding a housing loan is secured in nature..but only when your loan becomes NPA. The bank is kind of secure as it can take possession of your flat (if finished) else it will expect the builder to clear the dues.
But as an loan applicant, you will still be considered as defaulter and it’s very tough within the current process to undo that damage.
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KWhen my builder, long ago, disappeared with all our flat allottees money, we formed an association and completed the building ourselves. Court handed over the title for the land to all of us after we cleared the loan.
So talk to other flat allottees and see what you can do collectively (file suit etc.)
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KThat means you have lot of buyers and money to complete the project. We after building our flats, sold all the remaining units (virtual) to a builder and made money. That builder is yet to build after 25 years.
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U12 towers… 35 floors each… builder may possibly abscond. Mahagun. Hyper luxury… 2 flats each floor and 3 lifts types… both sides open….
It’s a cluster fuck situation.
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KIn our case: 1 tower with 21 floors. But we had to build only 7 floors and rest we sold to a new builder. Don’t contract with a builder, rather sell the project and buy individual flat at the original agreed price with the old builder. You need court approval and other buyers agreement etc etc
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UThanks. However, you don’t understand the scale of this project 🙁 . Could you google ‘Mahagun Medalleo, sec 107, Noida’ once plz and then advise.
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KThat project Mahagun Medalleo is still selling and ongoing, right? Talking about Ozone Urbana, I would say forget about any recovery. I lost money to another Bangalore scam involving 5000+ acre plot development. These mega projects are backed by politicians and enforcing any rules is impossible even if you win any case against them.
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UI’m truly sorry to hear about your plight. Nobody should have to undergo such ordeals. However, when you bought in 2022, did you do basic research such as when the project was launched and what the promised delivery date was? I’m asking this because there are people who bought in this project in 2014! By 2022, it was already clear that the builder was a defaulter.
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BLooks like there is already an FIR – https://www.newindianexpress.com/cities/bengaluru/2024/Dec/10/ozone-urbana-association-files-fir-against-developer-for-cheating-buyers-of-rs-3300-crores
Try talking to them to figure out next steps.
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BAlso found this – https://www.facebook.com/groups/462313211586077/
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