Hello Ramya,

You have two options first is that you will have to approach the bank and tell them the scenario and all the letters which are required to show that the loan was to be disbursed by the constructor; and secondly serve a legal notice upon the constructor with regards to the same.

Regards

No one can force you like this, you can go and lodge an FIR against the constructor out rightly and show it to the bank. That is not how law works in India, you can avail appropriate remedy.

The formalities will be completed by Kaanoon itself.

Thanks

If you don't repay the loan bank would take recovery proceedings against you to recover loan amount with interest

2) file complaint against bank for deficiency in service before consumer forum

3) bank ought to have released funds based on progress in construction on site

4) bank should have cross checked whether building plans have been sanctioned before sanction and disbursal of loan

5) if land was reserved for metro obviously plans would not have been sanctioned

6) appears to be collusion between bank and builder in sanctioning of loan

1. You can not take any action against the lending Bank since it is your responsibility to conduct appropriate search about the property you chose to buy.

2. It appears that the developer had collected the payment on your account for delivering you the said flat knowing very well that no construction on the said land is possible for Metro acquisition.

3. You can lodge as police complaint against the directors/partners of the developer bringing the charge of cheating against them for taking the payment from the Bank on your account for selling you the said flat knowing it very well that they can not construct the said flat. This way the said developer will be under pressure to refund the money it has taken from the lending Bank on your account.

4. Simultaneously, file a complaint case before the local Consumer Dispute Redressal forum against the developer alleging deficiency in service and unfair business practice claiming refund of the entire balance amount of the loan to you or the lending Bank with in next 15 days with interest, damage and cost.

5. If he fails to comply with the said Forum's order, file an execution petition praying for their arrest and also attachment of their properties for selling and recovering your dues.

1)don't pay bank loan EMI

2) in case bank files recovery proceedings file counter claim against bank

3) sue the builder to refund money with interest

4) in alternative builder be directed to pay bank EMI

5) also file criminal complaint against builder for cheating and criminal breach of trust

1. You have taken loan from the Bank for paying to the developer.

2. The developer has cheated you for agreeing to sell you the flat which can not be constructed by him and took money from the bank for and on your behalf as agreed/directed by you.

3. Your advantage is that there is no property of yours mortgaged with the bank and the property which was proposed/agreed to be mortgaged can not be constructed.

4. So, the Bank can not enforce security interest on any property mortgaged with it for selling it and recovering the dues as per SARFAESI Act,2002.

5. The Bank officials who sanctioned the loan for the said property will be in trouble internally for not verifying the fact that land has been acquired by Metro Rly. They may pass on the buck on their empanelled lawyer who had made the search of the property. However, you can not sue the Bank for it since primarily it is your responsibility to conduct property search and pay back the lending Bank the loan you have taken from the Bank.

6. The Bank can not attach your salary for non payment of EMI unless you have given a mandate to them for asking your employer to deduct the EMI from your salary and remit to the Bank.

7. Lodge police complaint and file complaint case before the Consumer Forum as advised in my earlier post since those are the right course of legal action for you.

Since the bank may have approved the housing loan on the basis of your income and employment status, it may initiate recovery action through your salary by filing a recovery suit before court.

You have to issue a legal notice to the builder about this and instruct him to repay the loan amount immediately failing which you would initiate legal action agaisnt him through appropriate forums for recovery. You can endorse a copy of this notice to the bank also.

In the meantime you may request the bank to tolerate and allow you time to repay the loan which was cancelled due to the circumstances as explained earlier.

We have explained the Bank and bank knows the situation very well still Bank is pressuring us to PAY EMI and threatening me that he will go to my empoyer and get salary attachment for a site which is not built or is never going to be constructed -(I can agree even if construction gets delayed some day I will get my flat ) why should i pay EMI for which I will never get a FLAT in return .IS this how democracy and LAW runs inn INDIA .

How can i protect against BANK .can i file a SUIT against bank

You cannot file any suit against the bank.

No doubt the bank has faulted by not verifying the details before sanctioning the loan.

This is a collusion case between the bank and the builder hence the bank was not keen in verifying the details before sanctioning the loan.

However if the bank files a suit, you ask them to go ahead. You can challenge the bank on this issue and also can drag the builder who is responsible to return the loan amount because the bank has paid him directly though it was for your project. Since the project is not going to materialise the builder is responsible for returning the amount he had already availed. So the bank cannot initiate any recovery action from you through your employer and court if convinced about the situation may not pass any order as per bank's prayer.

You may consult a local advocate and proceed with the legal action as envisaged in law.