1) if customers do not pay contractor on time then he can issue legal notice to customers to make payment 

2) file summary suit under order XXXVII of code of civil procedure to recover dues with interest 

Dear client,

Please, prepare a best drafted agreent in favour of you to avoid any losses or cheating. 

Here contractor should sign agreement and MOU what type of work will be done, in which time frame and how much of amount need to pay by owner of the house.

So in this quality of work, quantity of work, timeframe of work completion i.e. Schedule and amount paid all must be written. So nobody can blame contractor.

This law is very old from 1890 the Indian Contract Act.

Well, the buyers shave every right to take loan on any item they want.Now if the builder finds that he is not getting money in time then he has every right to cancel the agreement.

So in other words there must be a stringent terms or strict schedule of payment in default of which the builder must have stipulations to either to impose hefty penalty or to cancel the deal.

It is not highly improbable that all the buyers or majority of it in a project defaults in making payments.

The builder must have a corpus to stick to schedule of work if there is cash crunch from the side of the buyers.

If the buyers at fault to making payments in time then the outcome of the cases filed by the buyers would not go in their favour.

This is my response to you:

1. Is the contractor registered?

2. If the contractor does not abide by the agreement then he is liable;

3. If the agreement is favourable to the contractor then the contractor can make a counter-argument;

4. Consult a local lawyer, discuss full facts and take steps.

Your side of story need to be heard in detail.s So meet an advocate with all papers to discuss in details. 

You have to file case properly and your lawyer should brief the case properly in the court so your point get focused and the chances of Winning case from your side.

The builders and contractors can recover the amount , they can deny the possession of property till the party make full and final payment in case of delay along the interest. See there are laws which safe guard builders and contractors also. 

See if they file false cases and defame the contractor and intimidate for money the contractor can first file quashing of FIR and then can file suit for defamation and complaint of defamation and intimidation. 

Issue legal notice to accused to withdraw false and defamatory statements made against you

if they refuse File complaint of criminal defamation against the accused under section 500 of IPC for maligning your reputation 

The person who has not paid money to the builder on time has not locus to raise a complaint against him.

The builder in the court can say that it is because of the people like the complainant who are not giving the money on time the project is getting delayed. 

Regards 

As told above he can raise the ground in his defense. As and when the people dont give money the builder can send a notice for cancellation of the allotment and may then forfeit the entire payment made. 

The builder must include such terms in the MOU as well. 

Regards 

The contractor or builder alo know the rules in this regard and they can very well initiate action against the defaulter.

No buyer will utilise the bank loan funds for some other personal purpose, in fact the banks generally give cheques to the builder's name hence ther are no chances to cheat the builders.

The builders take up the projects which are beyond their capacity and get stuck when they dont find funds for progressing the project.

There are very rare cases that the buyers cheat the builder hence it is not a common sight for which you may be looking for a solution.

Even otherwise the builders know how to recover the amount with interest as per the conditions of the sale agreement and as per law.

The incident what you mention are very rare and sporadic and not a regular affair.

There may be a customer or two who would indulge in such activities. 

As the builder is having all documentary evidences of the payments received, he can produce the same before police and can get rid of such menaces.

In case of any serious issues, the builder can very well initiate legal process against such unscrupulous people with the help of his advocate as per law and the conditions of the sale agreement.

You can file a suit for specific performance of the said mou and make them pay the said amount

contractor can file a recovery suit under Order XXXVII the Civil Procedure Code, 1908. Since you have all the proofs with you with regard to the contract, reminders etc... 

Dear Client

Law is equal for everybody there is no difference between a contractor and a house owner in the eyes of law. And if you have a written contract with the owner then you can file a suit for breach of contract, cheating and for compensation on the owner for not giving the payments on time for that you should have all the records of payment received from the owner and you can also file police complaint of cheating.

Dear Sir,

You may approach police or Magistrate directly by filing a complaint or private complaint.