a. It appears that you have already paid 70% of the total consideration including the bank disbursement which stands as loan in your name. So. the builder can easily deduct 10% of the total sale price and refund the balance amount of 60% to HFC while cancelling the said flat.

b. You can inform the HFC about the said cancellation but please note the you shall stand as a defaulting before the HFC liable to repay your loan and your CIBIL score will nosedive.

c. You shall stand as willful defaulter before the HFC who can file a suit against you claiming refund of the said balance 5% and interest thereupon for which the Court may pass order for attaching your other properties.

If there is cancellation clause in contract then builder can on cancellation deduct 10 per cent of total consideration

2) you should not stop paying any EMI till agreement is cancelled

3) inform the HFC about your discussions with builder for cancellation of agreement

4) if loan disbursed is not repaid in full you would still be liable to pay HFC balance amount of loan outstanding

Cross check with HFC what would be liability in case agreement is cancelled and 10 per cent deducted by builder

2) then only take call of cancelling agreement

3) don't stop paying HFC EMI at present

1. Well, the agreement is to be seen to find out the cancellation policy .

2. Your payment of 5% has consideration on the amount of deduction.

3. If the cancellation is from your end then you can not avoid deductions.

4. If you stop EMI then bank will attach the flat and since it is not fully paid the bank will recover the amount from you or the guarantor, if any.

5. negotiate with the builder and reach to an amicable solution.

1. you can stop the EMI and surrender the flat to bank because this loan is a mortgage against property.

2. in this case bank can resale this property or builder can re-register this property to another buyer.

1. The builder may deduct the 10% amount while repaying the bank, the balance amount if any has to b paid by you to the bank.

2. You may have to continue to pay the EMI till the builder is making payment to the bank, the excess paid if any can be recovered from bank by you directly

3. You would be required to make good the balance if any due to the bank.

The calculation is to be made as per the practical situation about the EMI repayment especially when you have already paid some amount out of yor pocket.

Verify the calculations given by the builder and the bank and point out the irregularity if any found by you in this regard.