Newly launched project showing as mortaged property by assets care

[User_d35aa5b2]

U

User_d35aa5b2
PARTICIPANT
February 16, 2025 at 11:59 am

For context, I was planning to go for a newly launched project that is approved by RERA and bank is giving loan. Now, this apartment’s builder took over the land from a bankrupt builder.

On the project website, I swa this message
This project is mortgage by ASSETS CARE & RECONSTRUCTION ENTERPRISE LIMITED.

What is the implication of this ?
Is it safe to invest ?
Can this not lead to future complications ?
How did it get RERA and bank giving loan if it is mortgaged

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[Luckytara4910]

L

Luckytara4910
PARTICIPANT
February 16, 2025 at 12:16 pm

From the information that you had shared, it seems that an asset reconstruction company has taken over the project because the previous builder defaulted on their loan payments to the bank or the financial institution and the bank or the financial institution has assigned their debt to this ARC. It also seems that this company intends to complete the project through a builder, but the project is still owned by the ARC for recovery of dues. RERA etc is not relevant here. Would suggest that you speak to the ARC being purchasing your house since you would need a clearance from them. It is also likely they would have set up a special bank account for payments to be paid into.

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[User_d35aa5b2]

U

User_d35aa5b2
OP
February 16, 2025 at 12:26 pm

Yeah that could be the case but the new developer is directly selling the flat.
My uncle also booked flat here and he executed the Buikder buyer agreement without any such clearance or mention about this mortgage.

The payment he made was to the RERA master account ( in favour of the developer)

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[Luckytara4910]

L

Luckytara4910
PARTICIPANT
February 16, 2025 at 4:16 pm

It is possible that the ARC has handed over the execution of the project to this builder for a ‘turnaround’ but you need to check with this company as well. It depends on what type of charge does the ARC have on this. Have they taken an overall charge on the entire project or land or have they taken a charge on individual apartments. Because once the project finishes, they would need to satisfy their charge otherwise the property still belongs to them.

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[User_d35aa5b2]

U

User_d35aa5b2
OP
February 16, 2025 at 5:26 pm

Ok…I will try contacting this ARC.
What surprised me was that bank loan was given to this without any scrutiny and the project clearly states this mortgage part on the website but my uncle who bought a flat here had no clue and now also is ignoring this.

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