I had booked a property under a subvention scheme according to which I paid 10% at the time of booking and then had to pay 10% at the time of possession. Since the project was delayed, it went out of the subvention period and since there was a delay from the Builder, I filed a RERA case with the builder which I won 6 months ago that ordered the builder to hand over the property to me along with interest on the payments made after payment of balance if any. Since there was no compliance by the builder, I approached the RERA again and they issued an Execution notice to comply within 2 weeks. That period too expired last week. Meanwhile, Bank filed a DRT case against me seeking recovery maintaining that the loan is between me and the bank. I have signed a tripartite agreement with the bank and the builder , also bank has vetted the builder before extending me the loan under the subvention scheme. 1. What is the next step for me to get possession since Builder has not complied with the execution notice. 2. Do I still need to fight the DRT case or can it be delayed till builder complies with the RERA order? 3. Lawyers tell me that DRT cases are expensive to fight - what do you suggest I do ? I do not want to settle the debt with the bank till I get possesssion of the property
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
You have to fight DRT case
2) litigation is long drawn and expensive proposition
3)in case a developer does not honour the Rera order, it. Is forwarded to the concerned district magistrate to recover the dues. The district magistrate recovers the money as arrears of land revenue. Money so recovered is deposited in Rera account and from there it is transferred to the beneficiaries of the Rera order.
1. Bank cannot seek recovery without adding builder as a party in view of tripartite agreement. Bank is necessary part of any procedure by bank.
2. File a petition in DRT seeking to add builder as a respondent/defendant No. 2.
3. Seek stay of all DRT proceedings until possession is given to you with cc and oc.
4. You can also approach High Court if DRT application to add build a party is rejected.
Rera has directed the builder to hand over possession
I want to know whether OC for the building is received ?
It appears that you have to pay 20% from your pocket, 10% at time of booking and 10% at possession
This means the balance 80% would have been paid by the bank under the subvention scheme to the builder on your behalf
So you are indebted to the bank for that 80% regardless of the fact that you have not got the possession
The subvention scheme is discontinued by RBI and is prohibited. There appears to be some RBI circular for that
I would like to see your tripartite agreement to ascertain when your liability to repay the loan is triggered
In some cases, banks may not be able to take action against home buyers for defaulting on EMIs in a subvention agreement if the builder is at fault. However, this depends on the circumstances of the case.
A subvention agreement is a tripartite agreement between a buyer, bank, and builder that finances a flat.
To address your situation, as the builder has failed to comply with the RERA execution notice, you should move for attachment of the builder's properties under Section 40(1) of the RERA Act and initiate contempt proceedings for non-compliance. Regarding the DRT case, while the loan liability remains yours, you should file an impleadment application to make the builder a party to the dispute, highlighting their non-compliance as a defence. This will also allow you to seek directions for the bank to recover dues from the builder under the tripartite agreement. Although DRT cases can be expensive, consider filing a counterclaim against the bank for failing to ensure due diligence under the subvention scheme and link your inability to settle the loan to the builder’s non-performance. Additionally, you may approach the consumer forum for deficiency in service and damages caused by both the builder and the bank. Negotiating with the bank for a moratorium period or reduced EMIs until possession is handed over could also help ease financial pressure.
You execute your order and issue non bailable warrant against him. Go for attcahment if he doesn’t comply. In DRT you file rera order and seek stay
Dear Sharan Chopra, Thanks for the detailed response to my queries. My immediate need is to get a stay on DRT proceedings and then act on the other items you have listed. What would it cost to do the following through you - (the DRT case summons date is Jan 30th 2025): 1. a. File a petition in DRT seeking to add builder as a respondent/defendant No. 2. b. Seek stay of all DRT proceedings until possession is given with cc and oc. 2. In the Karnataka RERA Appellate Tribunal (KREAT), apply for a stay of DRT proceedings, arguing that enforcement is dependent on possession being granted by the builder. Also I will rely on you to arrange a lawyer in Bangalore to represent my case in court. You can reach me at [deleted] for further clarifications
There are number of lawyers on this website from Bangalore having good ratings
you can contact any of them
You can contact an advocate from this forum hailing from Bangalore having expertise in the subject matter.
The court fee, lawyer fees and the filing procedure for filing the appropriate petitions will be taken care by the chosen advocate.
Yes you have to do all of the above as well as rely the rera order in the DRT
File Petition in DRT:
Apply for Stay in KREAT:
Engage Local Lawyer: