Pay EMI to bank
file complaint against builder before consumer forum or RERA seek orders to direct builder to pay EMI as per terms of agreement
Builder promised pay pre EMI till delivery date but not paying,should I pay EMI to Bank+ file RERA
I purchased a property by a Builder in 2017 May , Builder promised to pay pre EMI till Delivery date i.e Oct 2019 but not paying and Delivery is postponed to Dec 2023, should I pay EMI to Bank and file RERA complain? Will order from RERA help stop harassment by Bank to pay EMI ? What happens to the penalty imposed by Bank?
Asked 4 years ago in Property Law
Religion: Hindu
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
11 Answers
A complaint can be made to Real Estate (Regulation and Development) Act, 2016 Authority on the ground that the builder violates terms and conditions of agreement and is involved in unfair practice or irregularities. His registration will be cancelled but Real Estate (Regulation and Development) Act, 2016 Authority cannot direct him to pay emis. For that you have to approach Consumer Forum under new Consumer Protection Act, 2019 under which proceeding are fast and order can be made against the builder to reimburse you against the payment of emis. Real Estate (Regulation and Development) Act, 2016 do not have such power.
Should I keep paying EMI ? Also what are consequences of not paying EMI ? will the bank harass my family members in my native town ? or confiscate my other assets like Life Insurance etc or just the property being built by Builder ?
Asked 4 years ago
1) you should keep on paying EMI
2)if you fail to pay EMI bank would seek to auction flat
A subvention scheme may turn out to be a double-edged sword if the developer fails to deliver the project on time, the burden of both rent and EMI will have to be borne by the home buyer.
As the developer got all the money straight away, he had little incentive to finish the project on time. Thus, it was a risky proposition for both banks as well as the borrowers, in case the developer defaulted or the project got delayed. In case of any delay or default, it was not the bank but the buyer who got to bear the brunt.
In such cases, the home buyer suffers greatly as the loan is in his name and naturally the onus of repaying it also lies on him.
Additionally, a builder’s non-payment or late payment of EMI can spoil the credit score of a home buyer as the loan is in his name.
Thus it becomes the liability of the home buyer to pay the EMI defaulted by the builder, the RERA will not come to the rescue of the buyers in this scenario.
If you do not pay the EMI, then the bank would initiate process to recover the loan amount.
However the bank cannot touch your LIC policies or any other assets for recovery of the loan amount.
Kindly check your Agreement terms and conditions plus Sales brochure details. Before proceeding towards RERA. And why builder has stopped paying EMI, due to COVID-19 then you can get extension from bank as well so ask Builder to pay post COVID-19 EMI till 2023 or as per your agreement.
Loan account will be declared NPA and all the consequences of seizure and auction. Creditor is entitled to seize all the secured assets including insurance. Keep on paying emis and complaint to Consumer Forum, the faster you approach the Consumer Forum, the sooner will the builder be ordered to pay emis and reimburse for the emis paid by you. you can also file criminal complaint for cheating and fraud.
File a complaint before RERA.
G.Rajaganapathy
High Court of Madras
A case should be filed against the builder in the RERA tribunal and such fraud subvention schemes are rampant. You shouldn't pay the amount and obtain a stay.
The bank should alos be made a party to such cases and a stay can be obtained. In any case the bank can only take away your property but only if the case is decided against you.
Dear Sir/Ma'am,
- A buyer can file a case and send legal notice to the builder for delay in possession under the RERA Act, 2016 or transfer their case from a CDRC to the State Real Estate Regulatory Authority. According to this Act, a builder will have to pay 10% interest on the value of the property for delayed possession of flats.
- Further, A complaint can be made to Real Estate (Regulation and Development) Act, 2016 Authority on the ground that the builder violated the terms and conditions of agreement and is involved in unfair practice or irregularities. His registration will be cancelled but Real Estate (Regulation and Development) Act, 2016 Authority cannot direct him to pay EMIs. For that you have to approach Consumer Forum under new Consumer Protection Act, 2019 under which proceeding are fast and order can be made against the builder to reimburse you against the payment of emis. Real Estate (Regulation and Development) Act, 2016 do not have such power.
- It is also advisable for you to kindly check your Agreement terms and conditions plus Sales brochure details before proceeding towards RERA and why the builder has stopped paying EMI, due to COVID-19 then you can get extension from bank as well so ask Builder to pay post COVID-19 EMI till 2023 or as per your agreement.
