You have all your remedies against your seller. It is the responsibility of buyer to ascertain everything regarding title of seller. Builder has cheated you. File a criminal complaint against him under Section 420 in the court of Magistrate. Court will issue direction to local police to register FIR, investigate the matter, produce the builder in Court, charge sheet and after trial he be convicted. Punishment of cheating is jail up to seven years. The offence  is compoundable, you can settle the matter with builder and withdraw the complaint. No use filing any civil suit as civil proceedings are slow and you will have to pay heavy Court fee. It is fit case of 420.

File case of cheating , criminal breach of trust against builder 

2) file application before DRT seeking stay of auction 

3) take the plea that you are bonafide purchaser of property 

4) it is mortgaged to SBI and you are paying home loan installments regularly 

Hi, You have to approach the consumer court against the builder for deficiency of service and ask for refund of the amount which you have paid to the builder along with interest which you have paid to the Bank. Apart from the above you can seek for compensation for mental agony.

2. You can also lodge Police complaint for cheating.

1.  Sale of already mortgaged property by the builder is illegal.

2.  File a Police Complaint U/s. 420 of IPC.

3.  Serve a legal notice to the builder asking him to clear the bank's dues.

4.  File a complaint for Breach of Trust and seek recovery of the amount paid to the builder declaring that the Agreement of Sale was illegal.

5.  Complain to RERA, Karnataka, for their intervention in the matter to your advantage.

The acts of the builder amount to cheating under sections 415 and 420 of the IPC. You can file a police complaint. Additionally, if there was a contract between you and the builder, this would be a breach of your contract, so you can get compensation for the breach of contract, as given in the contract. In case you don't have a contract, then also the acts of the builder are in breach of Sec. 55 of the Transfer of Property Act, and you can file a civil case for recovery of damages and compensation.
Alternatively, you can also approach Consumer court or RERA for the redressal of your grievances.

Dear Client,

Section 60 of the Transfer of Property Act, 1882, lays down that after the principal money becomes due, the mortgagor can tender the money and require the mortgagee to deliver the possession of the property or the dead/documents to him. In 2020, the Supreme Court held that the right to redeem a property from a mortgagee, cannot be denied. It emphasized that equity insists upon the principle that a mortgage is intended merely to afford security to a lender and thus mortgagees have to be considerate before disposing off the property of mortgagor.

According to Rule 4 Order XXXIV of Code of Civil procedure, 1908, the mortgagee can apply for a preliminary decree in a suit for sale in the Civil Court, wherein the mortgagor shall be summoned to pay mortgaged money together along with other expenses as determined by the Court. In the event the mortgagor fails to pay the said amount, the mortgagee shall be entitled to obtain/apply for a final decree as per Rule 5 Order XXXIV of the Code of Civil Procedure, 1908, debarring the mortgagor to redeem the mortgaged property and permitting the mortgagee to sell the property.

In light of the same, recently, on September 2nd, 2021, the Delhi High Court, in the case of Pushpa Builder Limited v. Vaish Cooperative Adarsh Bank Limited., stated that it is, but reasonable, to expect banks, to respect the right of the borrowers to maximize their profits from the sale of collateral and securities by the banks.

- As per the RERA Act, if the builder is delaying in construction & delay in possession, then the builder will have to pay 10% interest on the value of the property for delayed possession of villa/flats.

- Hence, if builder fails to delivers the possession of the flat to you on time, then you can cancel the agreement due to his fault and you are liable to get full refund of paid amount with 10 percent interest. 

- Further, if you get the possession of the said flat lately, then also you can claim 10% compensation from the builder. 

- Since, the builder has received amount from the said bank after mortgaging the villas of the consumer and due to non-payment of the emi , the bank is going to auction the property , then the builder is liable to refund the entire amount with interest 

- You can lodge a compliant before the police against the builder for the cheating and breach of trust.

- You can file a compliant before the Consumer forum for the recovery of entire paid amount with interest from the builder. 

The easiest option is to go before consume court and file complain for deficiency of service seeking compensation

At the time of sanctioning you the housing loan, SBI should have thoroughly scrutinized the title through their lawyer. Had they done so, the previous mortgage in favour of HDFC Bank would have come to light. Anyway, now that the property is mortgaged to SBI for your loan, ask SBI to contest the claim of HDFC Bank under Sarfaesi proceedings or before the DRT concerned.

The developer can continue the project and hand over the flats to the respective buyers.

However, if the bank and the developer fail to find a midway, the bank will start to take possession of the project.

In this case, the bank or the lender, under no circumstances, will want to demolish the project. 

none of it affects the ownership of the property or the unit of the buyer. The ownership remains the same.

Though there would be some name changes in the deed which is handled by the developer, if the project gets caught in such a struggle, then the buyer must make sure all their documentation is in place. If the buyer holds a proper sales deed, builder buyer agreement and registration and stamps duty receipts, then they are protected.