• Unapproved Flat in Bangalore

Hello Sir,

Recently I have bought a Flat(1380 superbuiltup area) in 5th floor(Basement+G+4) of an apartment in whitefield, Bangalore around 3 months back. The Builder said that everything is approved except there is a deviation of 10%. So, I have applied a loan in SBI and got the loan sanctioned for which I am paying EMIs as well. Got the flat registered on my name as well.
1) now I got to know recently that the entire fifth floor in the Apartment is unapproved
2) checked with BBMP and they said only G+3 is approved
3) It seems like the Builder forged the documents to have the Fifth floor included 
4) Already few owners of land(who have few apartments as share) raised a petition in BBMP to demolish the 5th floor

My questions:
1) I am not sure why SBI has approved the loan
2) Is there a way to pay penalty for the individual flat to avoid demolition? If so how much would be penalties?`
3) Would there be any issue from Bank of cancelling the loan? would there be any legal issues for me?
4) should I ask Builder regarding the Forgery?
5) What should be my next steps now on this?
Asked 7 years ago in Property Law
Religion: Hindu

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3 Answers

1) SBI must have approved loan on basis of forged documents submitted by builder that plans for 5th floor have been approved by BBMP

2) it is doubtful that BBMP will regularise construction on 5th floor when plans for only up to 3rd Floor were sanctioned

3) request SBI to halt further disbursement of loan and ti cancel the loan

4) file police complaint against builder for cheating , criminal breach of trust

5) file complaint against builder before consumer forum and seek refund of money paid by you with interest

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

you should file a case before the consumer forum for cancellation of agreement and compensation because builder has committed fraud in taking your consent for sale agreement. builder is liable to return all the money entrusted and interest thereupon.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

1. Your suspicion is right that even the staff in SBI loan sanctioning department are involved in this scam and hence overlooked the legal requirement.

2. The penalties for regularisation would depend on the authorities approving application seeking to regularise the illegally constructed floor.

3. If the bank authorities find out the illegal structure and the dangers iit they may immediately initiate action to cancel the loan and initiate recovery process for the loan already granted.

4. You should certainly issue a legal notice to the builder seeking his explanation with regard to this fraudulent act.

5. You can obtain stay or injunction when the authorities initiate action to demolish the illegal structure or can apply for regularisation of the same citing innocence as the reason and express willingness to pay penalty

T Kalaiselvan
Advocate, Vellore
85369 Answers
2231 Consultations

5.0 on 5.0

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