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Home loan sanctioned on builder's fake documents, how to proceed


14-Jul-2023 (In Banking / Finance Law)
taken a home loan & repaying EMI regularly since 2014. Project is still not completed. Recently through RTI it has came to notice that the project was not constructed according to the then approved plan. The existing plan (actual) was compounded later on 9.9.2014 whereas the home loan were sanctioned prior to this approval. Builder has submitted false undertaking as well as fake plan to bank stating that the construction is in accordance to approved plan. Bank has denied to provide the copy of plan submitted by builder directly to bank & also not responding on my complaints. What action can be taken against the bank. Can we ask the bank to recover the entire loan amount from builder.
Answers (1)

Answer #1
663 votes
No, You are responsible for the loan payment. You can proceed legally against the builder for the delay and for not constructing it as per plan and can make a party to the Bank also if the project was approved by the bank.
Rajiv Jindal
Advocate

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