I have booked a flat with a ruputed builder.Though the possession date is Dec 2019, the contruction at site was very slow earlier and now its completely stopped. Though builder has promised to start construction soon. I want to know the option I have, because the builder cannot complete the entire project overnight even if they start. Also the NBFC who financed the loan is not disbursing any further money for the project. The present situation is that builder is not constructing and bank wants the disbursed amount to be considered as final amount for loan pay back. And without further loan, I cannot pay the builder which will make me default.
I presume project is registered with RERA
2) if builder fails to deliver possession by December 2019 you can terminate agreement and seek refund of money paid by you with interest under section 18 of RERA act
3) if you don’t want refund you are entitled to compensation for delay in delivery of possession
send a legal notice through lawyer and ask builder to give immediate possession or pay your rent till possession or compensation. If builder will not act per notice then file case in consumer court under deficiency in service.
1. The time limit for the completion of the construction must be mentioned in the sale agreement. Refer to such clause.
2. The sale agreement must have contained the clause governing the cancellation of it.
3. So refer to it by this which part of the constructions should have been completed by this time. If not then there is every likelihood the project would be delayed.
4. So if you wish to come put of this project then you can take the plea of delay in project and send him a notice for cancellation of the deal and seek refund.
5. The cancellation at this stage may attract a nominal deduction of money.
Plz also suggest can a NBFC back off from financing a project unilaterally. Are they not responsible and disburse the entire loan amount.
What is reason given by NBFC for failure to disburse balance loan amount
it is necessary to peruse your loan agreement to advice further
1) If the bank finds out that the builder is either blacklisted or non-approved with the bank, the bank can withhold loan disbursement.
2) Sometimes, banks conclude that the total valuation of the property is lower than the amount sanctioned by them. In such a scenario, they have no option but to either reduce the sanctioned amount or withhold the loan disbursement.
In reference to the abovementioned Loan Account Number, this is to inform you that the Loan amount is partly disbursed and the Loan has not been fully drawn within reasonable period.
In view of the above and pursuant to the loan documents executed by you in connection with the Loan (''Loan Documents''), we wish to inform you that the loan limit is being downsized and the availed loan amount shall be treated as the full and final loan amount.
In view of the aforesaid, please note that the outstanding principal amount(s) of the Loan along with the interest thereon shall be payable / repayable by you in equated monthly installments on the due date(s). You are requested to kindly comply with the aforesaid.
Save and except as stated herein above, all other terms and conditions of the Loan Documents shall remain the same. This is without prejudice to the Lender’s rights, claims, interests and/ or remedies under the Loan Documents and/or the applicable laws.
Below is the reason given by nbfc....
"Any capitalized terms used and not defined herein shall have the meaning ascribed to them under the Loan Documents.The disbursal of loan is sheer discretion of the creditor and for withdrawal from the project no action will lie against the financier.
The builder has completely stopped the construction and hence would not be able to finish the project. The bank should finance the entire amount as promised as the other party has altered its position because of the promise made by the NBFC. Therefore the terms of loan amount should be read Nd maybe there is something in fine print on the strength of which they have stopped payment. Otherwise you could petition the bank higher officials to disburse the remaining loan amount.
Regards
You can file a Complaint against them before consumer court for deficiency of service
What was period mentioned in loan agreement for disbursal of loan ?
You can approach another housing finance finance company and have loan transferred to said finance company or bank
Hello sir , if the construction of the builder has not been upto 40 percent till date ,you can file for refund under section 18 of RERA
If the builder is not showing any progress then the NBFC may follow the rules in this regard very strictly.
You may try for loan from any other department or seriously think about cancelling the booking due to the said constraints.
NBFC have got certain limits and restrictions.
If the builder or the buyer is not cooperating then it may impose the terms and conditions therein and may even cancel the loan.
If you feel that the NBFC has not acted as per the prevailing law in this regard, you may drag them to the consumer forum seeking to redress your grievance in this regard.