Dear Sirs,
We have booked a flat in Mumbai with a reputed builder. The loan is sanctioned by bank. The work was stopped by the builder by one year. We have already paid our contribution. Now the builder is demanding for money. But the bank will pay the money according to the progress of work only. The builder is demanding say Rs. 6 lakhs whereas the bank is saying it cannot make the payment unless the proportionate completion certificate is submitted.
In the meantime the builder issued letters to the flat purchasers saying that the booking of the flats will be cancelled and the money paid will be forfeited if the instalment will not be paid by end of this month.
1. Please let me know the correct postion.
2. Can the builder cancel the purchase of flat and forfeit the amount even if it is written in the Agreement (which is a standard clause with all builders).
3. If the builder cancel the booking and forfeit the amount paid i.e. around say Rs. 30 to 35 Lacs, what legal recourse is available.
thanks & Regards.
