Can builder ask for money if the property has no authorized sanction?

I had booked a floor in 2012 with Ansals Gurgaon where I gave in the booking amount along with 2 installments for the same and has applied for a home loan for the remaining amount. Now all the banks say that they cannot give us the loan as the property has not got the required sanction from the authorities.

However, we have got another demand from the builder asking for Rs. 18 lakhs. What do we do now as we do not have the money and neither is the loan being approved.

Can the builder ask for money if the property has not got the required approvals from the authorities in the first place?

Answers (1)

59 votes

You need to convey in writing through Regd. post to the builder that he needs to get all the prior approvals and sanctions from the authorities and only then will you be in a position to pay him the installment amount as it is a mandatory requirements for the banks while granting home loans.

However, if the builder still does not obtain the requisite sanctions, you can approach the Housing Board and file a written complaint stating that the builder has not obtained prior sanctions and the Board shall take action. This way the builder will have to obtain the approvals / sanctions or else his construction would not be allowed to proceed.

You can also file a criminal complaint against the builder for deceiving you and dishonestly extracting monies from you thereby cheating you.

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