Subvention scheme is declared invalid. Now builder is not bound to pay EMIs, in case of default by builder, purchaser only liable. If builder fail to pay EMI`s your money will stuck and court procedure will take long time. Better withdraw from the project and demand refund.
Pre-EMI refunded by builder since Subvention cancelled by NHB
I have booked a property as per Subvention Scheme and paid 5% down payment to builder, recently there was notification by NHB that HFCs to desist from home loans involving pre-EMI, therefore banks not ready to fund as per subvention scheme... now builder has sent an email that bank will fund as per linked with stage of construction and pre-EMI which i am going to pay to bank will be refunded by builder every month... my question is in case builder fail to refund Pre-EMI monthly as agreed then what should I do, the email which they have sent is accepted legally and is there any IT impact on the amount received from builder
Asked 6 years ago in Property Law
Religion: Hindu
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9 Answers
In the subvention scheme it is the duty of the builder to pay the emi to bank as per construction linked plan. If he fails to do so the scheme fails
1)in case builder fails to honour his commitment made by email then you can cancel your booking and seek refund of money paid by you with interest
2) emails are admissible in evidence
Dear
If builder fail to refund pre EMIs monthly as agreed by him in Email. Then you can cancel the booking and seek refund.
Yes email are legally admissible as evidence in court.
1. since subvention scheme is discontinued, the bank will not accept the pre EMI from the builder
2. so you will have to pay the pre EMI and the builder will reimburse it to you
3. as to the IT impact, the reimbursement will not be your income since you are only clearing the obligation of the builder - but in absence of a tri party contract between builder bank and you recording the terms of the subvention scheme, the IT dept may create issues
4. so i suggest that the reimbursement of pre EMI by builder to you be recorded in your registered agreement for sale
5. you will be paying the builder on basis of the progression of the project - that is the payment will be construction linked - so if the builder defaults in reimbursing the pre EMI to you then you can ask the builder to insert a clause in the sale agreement that in such an event, the instalment that you have to pay to the builder through your bank, will be reduced to the extent of the pre EMI which is not reimbursed by the builder alongwith interest as agreed
you have a tripartite agreement Pradeep purchase of this property between new builder and the bank how your disturbance and scheme is not in force and builder is promising to pay the EMI during the construction period there must be an agreement between you and builder to provide the EMI assistance to pay the EMI during the construction period and that should be registered so that you will be able to enforce the agreement bank will have nothing to do with the Builder as the payment of EMI is your responsibility according to the tripartite agreement and bank will release the amount to the Builder as per the payment plan
Dear Sir,
Such false promises will be given by many builders. First track the builders background.
you can cancel and claim refund along with interest.
It comes under electronic evidence and
Indian Evidence Act, 1872 specially talks about it
in the second chapter on proof.
If you claim exemption from income tax on payment of the EMI to the bank as per the latest change in the rules, then the amount received from builder can be shown towards the amount paid and dont claim exemption.
If the builder do not pay the EMI amount as promised then you may initiate legal actions against him to recover the same on the basis of an agreement to be entered with the builder in this regard since you have joined this investment on the basis of subvention scheme.
