Advocate Shivchand Mishra (Lawyer) 02 January 2015

Home loan on illegal building

Respected experts,

I have taken a home loan from private bank to purchase a flat in badlapur 3 yrs back. Few months before I came to know that building is illegal as builder has taken huge deviations and miss used fsi and construed one extra floor and one extra building.

A notice was issued by municipal council to builder declaring the building illegal and Also in a police case panchanama of building was done by police and engineer who in his report has mentioned about deviation taken by builder.

I have complained about this illegality to Bank branch manager and bank directors through email multiple times. But the bank not reacted at all.

Now my query is can I sue the Bank for approving the loan without proper investigation and not reacting on my complaint.

Pleaae let me know what are the legal actions available with me?

Reply Follow

2 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 03 January 2015

file a case in consumer forum against builder and claim for compensation from the builder for illegal property. Apply for regularisation of property with penalty atleast now.

(Guest)

Building as a whole cannot be treated as illegal. Only the extra built up portion can be termed as illegal, which can also be regularised, if provisions are there, on submission of the revised building plan after payment of due penalty to the municipality for compounding the case.

So, before intiating any action, you just need to verify, whether your flat falls within the illegal part of the building and to what extent and whether that can be compoundable by payment of certin prescribed penalty or not. Of course the liability to pay penalty would be of the builder. You should be concerned with the completion certificate granted by the municipality whenever issued.