• Illegal floors construction

Hi All,

I'm Omkar live in Pune and purchased a flat in Kolhewadi, The building is collector NA and has town ship planning approved for 2 floors. My flat is on 2nd floor which come under authorized sanctioned plan. Till time i have given builder 2 lakhs and for registration, stamp duty has given 1.5 lakh. But while applying bank loan, SBI refused to give me saying building consist 3 illegal floors on top my flat. 

Now, I think that I took really bad decision. What I can do now, should i go to other private bank to give me loan ? or should cancel the flat (will get loss of pay around 3 lakhs) . I'm in really tension now .
Asked 8 months ago in Civil Law from Pune, Maharashtra
1) raise the issue with builder that bank had refused to grant loan as 3 floors have been illegally constructed 

2) cancel the booking and eek refund of amount paid by you 

3) if builder refuse fle complaint before consumer forum and seek refund with interest 

4) also seek compensation from builder for mental torture undergone by you
Ajay Sethi
Advocate, Mumbai
23206 Answers
1218 Consultations
5.0 on 5.0
1) if you want the flat from the builder take loan from private bank 


2) your flat won't be demolished but illegal floors which are unauthorised can be demolished 

3) builder should have 3 additional floors regularised from
Gram panchayat
Ajay Sethi
Advocate, Mumbai
23206 Answers
1218 Consultations
5.0 on 5.0
You should not have gone for the purchase if there was deviation from the sanctioned plan. Issue a legal notice for cancellation of agreement to claim the refund of the amount paid to the builder, and if he does not honour the demand then a suit for recovery may be filed against him. 
Ashish Davessar
Advocate, Jaipur
18088 Answers
448 Consultations
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In case of deviation only that part of property will be demolished which is built in contravention of the sanctioned plan,
Ashish Davessar
Advocate, Jaipur
18088 Answers
448 Consultations
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you can cancel this flat due to illegal construction. this is void contract under section 23 of the contract act so sale agreement is also void. you will get fair compensation under section 73/74/75 of the contract act. so file a civil suit for its cancellation and also for compensation, this flat may be demolished in future so bank cannot sanction loan for such sub crisis property.  
Shivendra Pratap Singh
Advocate, Lucknow
2737 Answers
41 Consultations
4.9 on 5.0
Hi, It is better you can ask for the refund of the amount as it is unauthorized  constructions, the authority may demolish the property at any time.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
Now, I think that I took really bad decision. What I can do now, should i go to other private bank to give me loan ? or should cancel the flat (will get loss of pay around 3 lakhs) . I'm in really tension now .

You can apply for cancelling of the booking with the builder quoting the reasons stated by the bank that the illegal construction may cause danger to the entire structure being pulled down by the authorities at a future date hence either get a completion certificate of cancel the booking for failing to provide a CC.
You may issue a legal notice subsequently demanding the refund or relief, failing which you may bring a litigation against him either through civil court or consumer court.
T Kalaiselvan
Advocate, Vellore
13985 Answers
127 Consultations
5.0 on 5.0
The Flat is in ready to possession.What are the consequences, if I still go with loan from Private Bank (which are ready to finance). Will Government demolish my flat ?(which is present in Sanctioned Plan). Whether insurance company will insure my flat ? Builder Has given me knowledge about three floors  which are build in Grampanchyat Sanctioned. Builder is friend of my father.

The gram panchayat approval of building construction plan is of no use because that can be obtained by any means including bribing the officials however the sanction by the country and town planning authority or other civic body is criteria which will sanction the plan and over see the construction and issue certificate if there is no violation or with an extent of permissible deviation.  You should have got a legal opinion from a lawyer and then proceeded with the purchase.
T Kalaiselvan
Advocate, Vellore
13985 Answers
127 Consultations
5.0 on 5.0

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