• Orbit residency park

Orbit Corporation defaults on 96 crore loans - The Economic Times


Please refer to the above link. I have made an investment at one of the affected projects and have paid over 50% of the purchase price. I do not have an agreement signed as the intention has been that of an investment and a quick sale before possession. 

Can you please explain the legal implications of this default for ones who do not yet have agreements signed with the company - the only documentation available between the buyer and the seller is an allotment letter and the money receipts. In such a scenario, can the financial institution claim its security rights on a property for which an agreement is not signed but an allotment letter issued and payments made per the project milestones? Advice appreciated. 

Any other legal options available to me?
Asked 3 years ago in Property Law from Thane, Maharashtra
The allotment letter coupled with the payment receipts can be deemed to an agreement; on the basis of which you may claim against the financial institution. In any event, you can only have a money claim since the financial institution will always have a first charge over the property.
Prabhat Shroff
Advocate, Kolkata
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