I have booked a flat in Amrapali Dream Valley Noida Extension - Great Noida (West) under 80:10:10 subvention plan (No EMI till possession) in the year March, 2016.

Builder becomes defaulter and stopped the work in 2016 itself and not paying interest EMI to the bank as well.

Bank and its lawyer both issued notices to me to recover all pending money which builder has not paid.

I paid all pending money with all pending interest with penalties to bank and started paying EMI 1.5 years back and the same is paying till date.

The Honourable Supreme Court transferred the same project to NBCC for completion and to be handed over to home buyer according to a scheduled plan.

But till date no development work has started and looks very uncertain that we do not know when we will get the possession? And there is no place where we can know about the development of the project.

Should we continue paying EMI to bank without any surety, whether we will get the flat or not? What would be repercussion, if we stop paying EMI to bank?

Please advise what should I do? Really confused!

Ans: Firstly, you should ask your lender for a loan account statement such that you can assess and do a proper reconciliation to clarify the payments made and what is actually due.

Meanwhile, you can negotiate the time to make your payments till you can sort the issue with the lender.  

Ans: I understand this is a frustrating situation. Here are some steps you can take:

Regarding the Flat:

Review your Sale Agreement: This document outlines the terms of your purchase, including timelines for completion and any delay penalties the builder may owe.

Form a Flat Buyer Association: Connect with other buyers facing the same issue. A united front holds more power when dealing with the builder or legal proceedings.

Track Court Proceedings: Stay informed about the court case's progress. This might influence your next steps.

Explore Legal Options: Consult a lawyer specializing in real estate disputes. They can advise on pursuing compensation or withdrawal from the project depending on the court case and agreement.

Regarding the Bank Loan:

Negotiate with the Bank: Explain the situation and present copies of the court case documents. They might offer a temporary pause or restructure your EMI plan.

Consider Loan Against Property (LAP): If you own another property, explore a LAP to pay off the existing loan and avoid credit score damage. However, this is a complex financial decision, so consult a financial advisor.

CIBIL Dispute Resolution: If the bank reports a default despite your efforts, you can raise a dispute with CIBIL, the credit bureau, explaining the situation.

Here are some additional resources that might be helpful:

Real Estate Regulatory Authority (RERA): https://rera.goa.gov.in/ (if your city falls under RERA)
Consumer Forum: You can file a case against the builder for delayed possession.
Remember, this is a complex situation, and the best course of action might depend on the specifics of your agreement, the court case, and your financial situation. Consulting a lawyer and potentially a financial advisor can provide tailored guidance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in