Hi all,

I have booked a flat in Tingre Nagar Pune and applied for Home Loan in State Bank of India.after a month or so,Bank said a legal case is going on with Builder so u need to submit the Indemnity Bond with the Bank.(This was not informed before by the Builder that any case is going on with the said Survey number.) Then I have taken the Indemnity Bond signed by the builder to Bank.total process took more than 2 months.and Loan now sanctioned.
Now the builder is asking for the Interest to be paid as there is much delay in the Loan process.(He has asked to take loan from other banks Like HDFC/LIC) Whether builder can ask for the interest from me? What should I do?

Please help me in this regard.
Thanks in advance.


-Gary
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  • Originally Posted by Gary555
    Hi all,

    I have booked a flat in Tingre Nagar Pune and applied for Home Loan in State Bank of India.after a month or so,Bank said a legal case is going on with Builder so u need to submit the Indemnity Bond with the Bank.(This was not informed before by the Builder that any case is going on with the said Survey number.) Then I have taken the Indemnity Bond signed by the builder to Bank.total process took more than 2 months.and Loan now sanctioned.
    Now the builder is asking for the Interest to be paid as there is much delay in the Loan process.(He has asked to take loan from other banks Like HDFC/LIC) Whether builder can ask for the interest from me? What should I do?

    Please help me in this regard.
    Thanks in advance.


    -Gary



    I think delay in loan process is due to Builder as he was having legal issue on said survey number, bank can not proceed on loan process if there are any legal issues with project. You were not intentionally make loan process late.

    You can convenience builder on do not charge interest or check your aggrement clause of payment schedule and respective details done with builder.
    CommentQuote
  • Originally Posted by Gary555
    Hi all,

    I have booked a flat in Tingre Nagar Pune and applied for Home Loan in State Bank of India.after a month or so,Bank said a legal case is going on with Builder so u need to submit the Indemnity Bond with the Bank.(This was not informed before by the Builder that any case is going on with the said Survey number.) Then I have taken the Indemnity Bond signed by the builder to Bank.total process took more than 2 months.and Loan now sanctioned.
    Now the builder is asking for the Interest to be paid as there is much delay in the Loan process.(He has asked to take loan from other banks Like HDFC/LIC) Whether builder can ask for the interest from me? What should I do?

    Please help me in this regard.
    Thanks in advance.


    -Gary


    You may want to rethink if you want to go ahead if there is a legal case going on builder , especially if its about the said land - how will he convey the land to form a society if there are legal issues ?
    CommentQuote
  • Caution Advised

    I have booked a flat in Tingre Nagar Pune and applied for Home Loan in State Bank of India.after a month or so,Bank said a legal case is going on with Builder so u need to submit the Indemnity Bond with the Bank.(This was not informed before by the Builder that any case is going on with the said Survey number.) Then I have taken the Indemnity Bond signed by the builder to Bank.total process took more than 2 months.and Loan now sanctioned.
    Now the builder is asking for the Interest to be paid as there is much delay in the Loan process.(He has asked to take loan from other banks Like HDFC/LIC) Whether builder can ask for the interest from me? What should I do?


    First of all have you done proper agreement with the builder & paid stamp duty ?? If yes, then you need to look at the agreement about what is written. Again, as the delay was due to the builders' fault, you can definitely tell the builder that you are at no fault. You can approach consumer court too in this case.

    Coming to issue of builder asking to take loan from other banks; it has been observed that in most cases the builder asks buyer to take loans from those banks who have financed the builder. In this case, I am sure that HDFC or LIC must have lent money to the builder. Also, some builders have good relations with certain banks who are lenient in disbursing loan even when there may be legal issues pending, just like your case.

    It is best to avoid banks recommended by the builder & go with the bank which suits you the best.


    Originally Posted by suryawork
    You may want to rethink if you want to go ahead if there is a legal case going on builder , especially if its about the said land - how will he convey the land to form a society if there are legal issues ?

    +1. I echo your views here. It is risky to buy flat where land issues are evident. Check this post:-

    https://www.indianrealestateforum.com/forum/other-forums/legal-vastu-home-loans/home-loans-in-india/213-reverse-mortgage?p=117584#post117584
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  • Can you share details about Builder and scheme?
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