Builder agreed to pay EMI and now has stopped paying EMI


Hi. I had taken a homeloan from a govt bank, for which the agreeement was with the builder that the builder will pay the emi until possession. However builder has stopped responding to all queries for over 8 months and I don’t want that property anymore as I cannot afford to pay the emi. I am getting threatened by the bank, and Max they can do is putting in a cheque and having that cheque bounce. What is my solution in this matter.


Answers (3)

HI, in this matter, either you can ask the builder to refund your money. For that you have to file appropriate suit against the builder. Secondly, i need to see the tripartite agreement between you, builder and the bank. For more information feel free to have a word with me.


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If the clause that the builder will pay EMI is part of your contract to buy the house / apartment, the most efficient remedy with you is to raise a consumer dispute. The amount in dispute would determine whether your claim would lie before the National Consumer Disputes Redressal Forum or the State Commission.

If however the said agreement does not directly pertain to the purchase of the property and is made subsequently or independently, your remedy would be to file a suit for specific performance against the builder before a Civil Court of competent jurisdiction.

It is an existing practice in Delhi / NCR region and also certain other places that, the bank. builder and the purchaser enter into a tripartite agreement. If your case also falls in such a category, depending upon the terms of the tripartite agreement, you could insist that the bank proceed against the builder to recover the amount.

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These cases are very common nowadays. I would suggest you to send a legal notice to the builder to comply with the norms. All legal actions can only be taken once notice has been served upon the entity or individual you wish to take to court. It is only this process that legalizes bringing a matter to court. The intimation sent is known as legal notice. Many a times, a legal notice is served will bring the other party on heels and the problem can be resolved out of court too, with fruitful discussions on both sides. Alternatively you can also file a police against the builder for cheating and criminal breach of trust. You can also lodge a police complaint against bank for threatening you.

GOPAL VERMA
ADVOCATE ON RECORD
SUPREME COURT OF INDIA

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