Notice from bank for outstanding from builder

If the property has been under mortgage and the loan amount pertaining to particular property was not repaid by the builder and it remains outstanding then the bank will initiate legal action to recover the loan amount.

You can talk to the builder and bank and get it resolved instead of approaching court.

The bank is well within their right to recover the amount by auction sale of mortgaged property which is still in the name of borrower/ builder.

Thank you for the response.. There are 159 Flats in the apartment, 50 flats are Land owners share and 100 Flats are builders shared. Buulder has sold all 100 Flats to individual buyers and Land owner has 30Flats unsold.. In such case, which will be the flats that the bank can sell ?

Also individual flat owners got home loans from different bank, in the event of Sale, will the lender settle to the bank where individuals taken home loan?

It becomes the individual responsibility to repay the loan amount by the purchaser.

What the flat owners have done are purchases of flats whose title was not clear free of encumbrances. Hence the seller, the builder's bank has claim over the property. What the flat owners banks have done is to advance loans with property whose title to the borrower was not clear.  All can fight. The banks may be losers. But the flat owners are surely losers.