Satyajit (Team Lead) 06 March 2015

Society (under a.p.societies act 2001) stopped construction

Hi,

2 years back I made sale agreement to buy a flat in a welfare society (registered under A.P.Societies Act 2001) in Hyderabad. I took 80% loan from SBH for the same. After few months I came to know that society is running out of money and they almost stopped construction. Society gave whole project to a separate builder. Builder is also running out of fund it seems. Problem is, SBH also released 90% of my loan amount. 2 years I am paying full EMI and there is no hope of completion. There are couples of court case going on against Society. Looks like those are also never ending process.

My condition is, I am not able to bear EMI burden any more as I don’t have flat, not getting any kind of tax benefit out of that loan etc. Is there any way where I can stop my EMI until flat completes or is there any way where I can simply stopped EMI and back to normal, even I am ready to lose flat as well as 2 years whatever I paid to bank and society (aprrox. 18 lakhs).

One point, entire project is funded by SBH. Is there any way where I can claim my damage from society or bank or any other way to handle this crisis?

Please suggest.

Thanks

Satyajit

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1 Replies

T. Kalaiselvan, Advocate (Advocate) 09 March 2015

The agreement for sale is to be seen to give a proper opinion. From the contents it appears that the society is not functioning properly due to paucity of funds, however since the society has already received the funds from you towards the sale consideration of the property, it is liable to fulfill its commitments. If there is unnecessary delay in completion of the construction, you may draw the society to the consumer forum claiming damages for the delay as well as for having paid the interest on loans unduly due to their reason. Consult a local lawyer and issue a legal notice to the society and after that plan to initiate appropriate legal action against the society. The EMI is being paid for the loan availed, the bank will not accept the request to stop EMI payments, if you default in payment, the bank may proceed to acquire the property and auction it to recover the loan amount under sarfesi act.