What recourse should be taken after cheated by builder? - Property Hotline

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Expert: Kartik Jhaveri, Founder & Director, Transcend Consulting India Pvt Ltd

Question: I invested in a property in 2007. This was a tripartite agreement between HDFC Ltd, the builder and me. Payments were supposed to begin only post possession. However, the builder ran away. I later learnt the bank had disbursed 100% of the loan to the builder immediately after the agreement was signed. My CIBIL rating is 626. I'm unable to secure another loan. I have no other default. If I go to HDFC Ltd and they do agree to offer a loan to me, would they in future be able to hold my current property or loan ransom to make me pay for the old loan that has not been paid? Do they have the right to club both the loans and then keep my current property financed till I do not make payments to both my loans?

Answer: The project does get approve until and unless the housing finance company has done the tactical check of the project. If not then the housing finance company will be going to face problem in future. If nothing happens then the worst case scenario would be you won’t get any loan from anywhere. Therefore save your money so you can use it somewhere else. CIBIL is going to be messed up only. Don’t pay if HDFC is not negotiating. It has to be sharing of liability between HDFC & you.