I had pre-booked an apartment with a Mumbai based prominent builder in Kanakpura Rd Bangalore in 2013. I have paid booking amount by cash and have paid 95% of project cost in total as per the terms of agreement. I have also taken home loan from a Bank. There is a tripartite agreement that the Bank executed. Early 2016 we (buyers association) found that the builder has a huge debt burden and he has multiple cases against him in Mumbai high court. Honorable High court of Mumbai ordered liquidation of all of builder's assets and an official liquidator has taken over the assets, including our uncompleted project. We (all buyers) formed an (R) association and have filed an intervention in Mumbai high court. While the court is empathetic to our condition, there is still a big question on who will complete the project. There are some unsold flats in the builders kitty, which are currently with the liquidator, and our request to the court is to hand it over to the association which can finance the apartment completion. But the court doesn’t seem very positive. All in all, we continue to pay our EMIs. Is there any way or legal provisions which can help us to refrain paying the EMI and interest accruals until project completion? Like say the Honorable court, in Bangalore, orders the Bank to interest till project completion.
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1) you cannot stop paying bank EMI and interest accruals till completion of project
2) if you pay bank EMI bank would seek to auction the flat
3) in case amount recovered is less than bank dues bank would seek to file recovery proceedings against you before DRT to recover its dues
The court can only empathise with you you, but it will proceed according to the law of the land which commands that the assets of the builder should be liquidated to discharge secured debts as the doctrine of buyer beware commands that the buyer should conduct due diligence before purchasing the property. All that you can do now is to file a suit for recovery of money against the builder in the civil court.
I suppose you are talking about Mantri Royale, on Kankpura Road, Bangalore involving Sunil Mantri, his other project Mantri Premero on Sarjapur Road is also in the dock, as a result the land owner who had entered into a Joint development agreement has along with other buyers filed a similar intervening application and is in the process of submitting a plan to complete the construction as directed by the Honourable High Court, Mumbai.
In the interim many buyers had approached the Consumer court seeking delay compensation for their respective flats, I understand that many buyers in your project had filed similar cases against Sunil Mantri. Many of the cases have been disposed off.
in any case coming to your important question, since you have availed of a housing loan, you are duty bound to pay the EMI's as agreed by you. If you fail to do so, the bank can take possession of your flat, attach it and sell it and recover the balance money.
You will have to approach the bank explain the impending circumstances pertaining to the project, the ongoing Company Petitions against Sunil Mantri and deligently seek relaxation to pay the EMI's until the court gives its verdict.
No court will interfere in this unless either of the parties have approached it for dispute resolution.
