planetmars

I gave advance or Rs 50,000/- for a flat in ground floor. We made the sale agreement, but I did not give copy of the sale agreement to the builder cum seller. The flat is almost complete. After visiting banks and other financial institutes, I came to know that they will not give loan to such layouts which are approved by gram panchayat. I did not know this and asked the builder to return my advance. He refused it, saying he will not return the money. I sent a lawer notice to him asking him to return the advance. Builder refused again in his reply. Builder asked me to pay the remaining amount and register the flat. My lawer adviced me to go to court. My lawer says that we have better chances of winning. But I am not confident. Are there any similar cases where the advace was returned ?

Nothing about return of advance was mentioned in the sale agreement.

If judgement comes in favour of the builder, do I have to pay penalty to the builder as he lost his business ?

v2together

First things First ,, you should have enquired from the builder about the approval of the project by any of the banks ? Then you should have collected the project file and visited the bank to check for the loan . before signing on the cheque .Now no need to cry after the milk has spilled ,,

planetmars

You mean.... it is not possible to get the advance amount back from the builder ??

Shonu

Hi Planetmars,

Regarding this issue only a professional lawyer can give you better idea.
You approach a good lawyer and try to get back the money somehow. Many such small contractors who turned into a builder after small real estate deals usually play this game.

There is no point on discussing whatever happened. Rather we will find a solution to this problem.

Try talking to a professional property lawyer and get the money back. This is a crime and he will be punished.

Regards
Shonu

Shonu

Yes builders do return advance if the loan is not approved for remaining payment. On booking amount no builder signs agreement. After the payment of the booking amount customer has to pay another 15% to execute the sale agreement. Simultaneously he should give his credit papers to various banks for the loan process.

All I want to say is builder have to return the booking amount if bank cannot process the loan.

Many frauds are there who eat money and ran away. If this builder is one of them and have Gundas around him then it will be difficult to get the money back.

Regards
Shonu

planetmars

Thanks. I contacted a lawyer. He adviced me to go to consumer forum. I will do that.

abk

this is not a criminal act but would fall under' specific performance '
did the builder offer to arrange the loan?
is the building plan approved by panchayat?
has anybody else got a loan in this project from other banks

these and the actual agreement will decide your case but a long process is guaranteed.
and as far as the generalisation that small builders only do this,
I have seen many big builders who do this and you can do nothing against them as they have political back up.

planetmars

the builder did not offer to arrange the loan. plan was initially approved by the gram panchayat, but there are deviations from the approved plan. one extra floor was constructed without approval.

Alees

u could request builder and hope for the best to happen

planetmars

Thanks for the reply