Legal Question in Construction Law in India

Hi,

Three years back, I decided to buy a house in one of the upcoming projects by a builder in Delhi, India. I was confirmed the possession by Oct'09. I had taken 20lacs INR as loan from a finance company and paid around 9lacs to the builder straightaway.

But, till date there are no signs of construction at the builder site. He is not receiving customer calls and is continuously shifting his offices. He is not ready to make any promise of the possession date.

I am in a very bad situation now. I dont want to pay the loan EMIs because I can see that I will never get this house and the builder is a fraud. But, I am regularly getting calls from the finance institution to pay my EMIs or they will take me to the court. They say that they have no responsibility in this situation.

Please suggest what should be the right course of action under this situation. I have filed a complaint with Economic Offence Wing, Delhi police, but am still waiting for a response from them.

Any help will be much appreciated.

Thanks,

Sachin Goel.


Asked on 10/08/09, 12:26 pm

3 Answers from Attorneys
Seshadri Srinivasan www.lawconcern.com

Issue a lawyer notice and file a consumer case for refund of earnest amount with interest and mental agony etc

Contact all other affected persons and form an association

Ensure that EOW have registered an FIR and follow up with them for charge sheet filing.

regards

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Answered on 10/08/09, 8:52 pm
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

which builder is that in Delhi?

you have an option to file a complaint before state commission against the builder and there are numerous cases where the builder was ordered to return the money and /or possession of the flat. you have done the right thing by approaching EOW cell but u need to pursue your complaint in case they do not take any action, file a separate criminal complaint to the Magistrate and seek registration of FIR u/s 156(3).

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Answered on 10/09/09, 1:02 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

You should immediately cancel the loan and arrange for repayment of nine lacs to the finance company; meanwhile, you may pursue your remedy against the builder.

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Answered on 10/17/09, 9:48 am


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