File suit to recover your earnest money with interest 

tags the plea that balance payment was not made within time as seller account was NPA and bank processing took over 2 months 

You need to file a suit for specific performance against the seller, in consultation with a local lawyer. Also, if you decide to file a suit, you need to execute a specific PoA in favour of your relative or friend in India to proceed legally against the seller on your behalf.

1. Legally speaking, the sale agreement will be valid upto 3 (Three) years.

2.  Send a legal notice to the buyer forthwith to start selling process with the sale agreement holder.

3.   If there's no positive response from the seller,  file a suit in the jurisdictional Court to  order in your favour to honour the sale agreement valid. 

Under the agreement sale had to be completed within 45 days 

on expiry of period you cannot force seller to execute registered sale deed in your favour 

at most you can recover your advance money 

1. Publish a Public Notice in the leading newspapers of the region both in English and the local language regarding the sale agreement entered into with the seller, which is subsisting and binding on both the parties and also enlighten the public not to deal with the property and if anyone does, you should not be held liable for the legal consequences.

2.  Proceed against the seller in the jurisdictional Court under specific relief act. Hope the sale agreement is a registered one.

You can try the Recovery through the suit by the said person as he didn't inform you about the same under NPA auction. You need to find out with whose fault the same has happened to recover the amount

Hi 

Since the seller did not have clear title at the time of entering in to sale agreement with you (on account of property mortgaged to bank, account turning NPA, bank auction etc), issue notice to seller directing him to execute the registration documents and hand over possession to you. 

Thereafter file a case under section 16(c) of specific relief act in the district court and take orders in your favour. 

It is true that court procedures are cumbersome  and time consuming , but hiring a good lawyer/law firm will ensure that you get relief within 12-18 months. 

Hope this information is useful. 

- You can file a suit for specific performance before the court for directing him to execute sale deed in your favor after clearing the dues of bank. 

- Further, you can also lodge an FIR against him for the offence of cheating and sell a mortgaged property .

- The legal age of that agreement is 3 years from the date of its execution ,i.e. you can file the said suit or recovery suit within this limitation period. 

Even if you require refund of the advance paid, you need to file a suit against the builder. Unfortunately, there is no shortcut. 

You have to take legal action agaisnt the seller by first making a criminal complaint against him for the offences of cheating, breach of trust and other related offences because he had suppressed the fact of the subsisting home loan in the bank and also the possession of property with bank.

Secondly you can issue a legal notice to him to return the booking amount with interest since he do not possess the property to which he entered into a sale agreement.

After that you can file a suit for recovery of your amount

Since the property has been taken possession by bank you cannot file a suit for specific performance against the seller especially if your sale agreement was executed by an unregistered document.

You have no option than to wait and follow up the legal procedures to recover your money, or else you may lose the money you have paid to the seller.

The police will be able to take only criminal action against him for the offences and the police cannot guarantee you for recovery of your money or to get the property registered to your name.

The bank will not allow you to get the property registered to your name during the subsistence of the home loan against the property.

1. Builder /Developer is legally not entitled to forfeit deposit /Advance of Property Booking in any guise. This has been upheld by RERA and Buyer is entitled to refund of entire amount. File Grievance Petition before local RERA authorities, preferably thru a local Property Lawyer.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

1. The said property was mortgaged with the lending bank and as per law mortgaged property can not be dealt with by the mortgagor without the written consent of the lending bank.

2. In the instant case, the said agreement entered in to by the seller and yourself in connection with the said mortgaged property is illegal, hence invalid and can not be enforced.

3. It is clear that the said  seller had cheated you by entering in to a sale agreement with you suppressing the fact that the property is under mortgage.

4. Lodge a police complaint immediate against the seller for cheating you, under copy to the DC/SP of your area and if the said person is not arrested and taken to court, file a Writ Petition before the local High Court against police inaction making the seller a private party.

5. Your problem now can be expected to be solved.

6. If not, then file a Recovery Suit claiming refund of the amount paid by you with interest, damage and cost.

1. You have paid the amount without checking whether the original title deed is with the seller or not.

2. Mortgage is created by depositing the original title deed with the mortgaging bank.

3. Since he has cheated you, you shall have to take the legal steps as suggested in my earlier post which includes lodging  police complaint and also filing writ petition.