Respected Experts,
We availed loan-against-property (LAP) from a private bank with approved plan comprising of 3 floors.
With the loan proceeds we constructed another floor (4th floor) and have applied for Building Regularization Scheme (BRS/BPS) with the city municipal corporation and is still pending for final clearence.
Due to overall failure of the project, we are unable to settle the loan with the bank. Bank has initiated SARFESI proceedings and even served symbolic possession notice recently. Under these circumstances, please help to clarify whether the bank can auction the 4th floor which is not yet having approved plan.
Thanks for your expert advise.
