Welcome to Moneylife Foundation’s

LEGAL RESOURCE CENTREMoneylife Foundation's Legal Resource Information Centre's (LRIC) main objective is to provide information, advice and preliminary guidance to persons needing legal help or planning legal action in 10 defined areas.

supported by

& other individuals

Q & A
HOW IT WORKS
Our panel of experts and resources are free and can be availed of anyone. Please click on Ask Question and send your query. Our Experts will provide basic guidance in due course.
You can seek help and guidance in following 10 areas such as CHS, property-related issues, Complaints to regulators, Consumer complaints, IT Act and civil liberties, Filing PILs, Whistleblowers, Sexual harassment case, Wills & nominations, RTI and Basic legal research.
ASK QUESTION
Disclaimer: The information posted on any page of this website is just a basic guidance and NOT professional tax advice.
OUR EXPERTS

Shirish Shanbhag

An MSc in Organic Chemistry and Diploma in Higher Education and Diploma in French. As a junior college teacher, he taught theory and practical in chemistry, to students in 11th and 12th standard at Patkar College from July 1980 to May 2012. After his retirement in May 2012, he started providing guidance to people on several issues. It includes, career guidance, Cooperative Housing Societies' legal paper works, Right to Information (RTI), Lokayukta, Ombudsman complaints, Marriage Registration,

Bapoo Malcolm

Bapoo Malcolm is an Advocate at the Bombay High Court and a former national cycling champion and a man of many interests. Mr Malcolm is an expert in the mechanics of preparing Wills. He is advocate practising civil and criminal law as well as documentation and arbitration. He also takes up family court matters, redevelopment and MHADA matters and testamentary work, including litigation. Mr Malcolm operates in areas up to Nashik and Valsad and from Igatpuri to Udvada. He has experience in polluti

Jamshed Mistry

Jamshed Mistry is a BCom, LLB, DLL & LW. He appears as Counsel in the Supreme Court and in various High Courts all over India. His clients have included several corporate companies as well as public sector corporations and institutions eg. the Reserve Bank of India and the Brihanmumbai Electric Supply and Transport Undertaking. He also works actively for social causes like the rights of disabled persons, beach safety (Goa Action Plan), the setting up of distinct hawking and non-hawking zones in

Shailesh Gandhi

Shailesh Gandhi is a graduate in Civil Engineering from IIT Bombay. He was a first generation entrepreneur in plastic packaging and was CMD of Clear Plastics Ltd. At the end of the 90

Abhay Datar

Abhay Datar is a consumer activist and is also Member of the Managing Committee of Mumbai Grahak Panchayat (MGP). He was Treasurer at MGP for over two and a half years. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of MGP in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related to mobile and mediclaim. Mr Data

AV Shenoy

AV Shenoy hold degrees in both Mechanical and Electrical Engineering from VJTI, University of Bombay and a Post Graduate Diploma in Industrial Management from Jamnalal Bajaj Institute of Management Studies. Worked as a Design Engineer in Electrical Business Group of Larsen & Toubro Ltd. at Powai from October 1969 to September 2001 and retired as Dy. General Manager. Also worked as a Facilitator/Trainer for implementation of Total Quality Management (TQM) and ISO 9000 in the organization. Since r

SD Israni

Dr SD Israni is an Advocate & Partner of SD Israni Law Chambers and has over 37 years of experience in the field of Corporate, Commercial and Securities Laws. He has simply written the book on Indian securities laws, copies of which he kindly donated to Moneylife Foundation library. Dr Israni's professional achievements are formidable. He was a member of the Naresh Chandra Committee for simplification of Company Law relating to private and small companies. He has been on SEBI's committee on

Mohana Nair

Mohana Nair is an Advocate practising in the Bombay High Court since January 1982. She is a partner at JMB Partners, director at Ugam Solutions and director at Avalon Consulting and has been a Proprietor at Mohana Nair Associates in the past. Ms Nair is a member of the Notary, Greater Mumbai since 1993, a member of the Bombay Bar Association, Intellectual Property Law Practitioners Association and of the Legal Cell of Bombay Chamber of Commerce. Her clients include multinationals, foreign compan

Ashok Ravat

Ashok Ravat is a qualified metallurgical engineer from UK in Systems and Operation Research. Being a passionate activist he has dedicated himself to consumer, environment and civic causes all his life. His consumer protection interests include being the Hon. Secretary of the All-India Bank Depositors

Sandeep Jalan

Sandeep Jalan is a B Com and a LLB and is on the rolls of the Bar Council of Maharashtra and Goa since March 2010. He has under the guidance of the former Central Information Commissioner Shailesh Gandhi, has provided assistance to the State Information Commission, Mumbai, in strategizing expeditious disposal of 2nd appeals filed there. He is associated with many groups such as Advocates at Supreme Court of India, CSR India (IRDS), Corporate & Legal Professionals of India, Lawyersclubindia, Lead

Sachin Gupta

Advocate Sachin Gupta is a BCom, LLB and LLM and also has a diploma in International Law from the London School of Economics. He is currently a partner at Negandhi Shah and Himayutullah, which is one of the leading law firms of India associated with a vast range of commercial transactions involving corporate and civil law issues and provided guidance on legal issues to various privatization projects to major Indian and overseas corporates and to the State

Yogesh Sapkale

Yogesh Sapkale is Deputy Editor of Moneylife and writes on legal, RTI, and consumer issues

I booked a 3 bhk in HI-Tech heaven project in bhubaneswar in the year 2011, at that time the construction was on and it was moving fine. I took a loan from HDFC to fund the purchase. During the period from 2012 - 2013 the promoter (hi-tech) was accused in some land deal and was arrested and sent to police custody, and CBI ceased all their bank a/c and they stopped the work in the project. There was no communication from them after that for a year or so. I got the news from media and social contacts but continued my pre-emi in the bank with the hope that everything will be fine in a year or so. but nothing changed.
I tried contacting the builder/prometer by call and email but they never replied to me. Then I visited their office and talked to one of the directors available, he promised me that they will take some action in the near future, that was a year ago in Jan 2016. since I got no assurance from them I contacted the bank asking for help multiple times but the bank has just one answer "pay back our money and we will close your loan a/c".
Devasted and frustrated I stopped paying the pre-emi to the bank and then the bank started calling me asking me to pay. but I am not paying till now.
There is a case filed by a group of people against the builder in the local court of law asking it to cancel their bookings but what I came to know from their office that they deposited few crore in the court and stayed it saying they cannot pay back the huge amount they owe to all the buyers. the court is yet to take a decision in this respect.

My question is: should I continue with my pre-emi and keep waiting for the developer to complete the project which I believe will take 5 to 10 years from now based on the way they are proceeding. Will I be paying this pre-emi to bank till the developer completes the project which will be a lot of money without any real benefit to me.
Is there a way out of this situation.
My take is:
1. cancel my booking and pay back the money to me and the bank
2. talk to the bank and negotiate with them so that I dont have to pay till the builder give possession
3. let the builder pay my pre-emi till they give possession
I informed both the bank and the developer about all these options but they are not in a mood.

Your questions:
1. Exact name of the lender. Is it HDFC or HDFC Bank? Both are separate entities.
Answer: HDFC Ltd
2. How much loan was sanctioned and availed by you?
Answer: Aprox. 18 lacs
3. How much money from the loan amount and from your own savings was paid to the builder? Was it given in phases or at one go?
Answer: Own contribution was 3.5 lacs (aprox.) loan from HDFC was paid in phases. The full amount is yet to be paid to the builder, aprox. 14.5 lacs is paid till date.
4. Was due diligence carried out by you as well as the lender before sanctioning the loan?
Answer: Yes
5. How much you have repaid and how is balance?
Answer: I was paying pre-emi only till date, emi not started yet.
 CHS, property-related issues
Comments
I booked a 3 bhk in HI-Tech heaven project in bhubaneswar in the year 2011, at that time the construction was on and it was moving fine. I took a loan from HDFC to fund the purchase. During the period from 2012 - 2013 the promoter (hi-tech) was accused in some land deal and was arrested and sent to police custody, and CBI ceased all their bank a/c and they stopped the work in the project. There was no communication from them after that for a year or so. I got the news from media and social contacts but continued my pre-emi in the bank with the hope that everything will be fine in a year or so. but nothing changed.
I tried contacting the builder/prometer by call and email but they never replied to me. Then I visited their office and talked to one of the directors available, he promised me that they will take some action in the near future, that was a year ago in Jan 2016. since I got no assurance from them I contacted the bank asking for help multiple times but the bank has just one answer "pay back our money and we will close your loan a/c".
Devasted and frustrated I stopped paying the pre-emi to the bank and then the bank started calling me asking me to pay. but I am not paying till now.
There is a case filed by a group of people against the builder in the local court of law asking it to cancel their bookings but what I came to know from their office that they deposited few crore in the court and stayed it saying they cannot pay back the huge amount they owe to all the buyers. the court is yet to take a decision in this respect.

My question is: should I continue with my pre-emi and keep waiting for the developer to complete the project which I believe will take 5 to 10 years from now based on the way they are proceeding. Will I be paying this pre-emi to bank till the developer completes the project which will be a lot of money without any real benefit to me.
Is there a way out of this situation.
My take is:
1. cancel my booking and pay back the money to me and the bank
2. talk to the bank and negotiate with them so that I dont have to pay till the builder give possession
3. let the builder pay my pre-emi till they give possession
I informed both the bank and the developer about all these options but they are not in a mood.
Answered  CHS, property-related issues
Comments
View Our Experts
Our Experts

Shirish Shanbhag An MSc in Organic Chemistry and Diploma in Higher Education and Diploma in French. As a junior college teacher, he taught theory and practical in chemistry, to students in 11th and 12th standard at Patkar College from July 1980 to May 2012. After his retirement in May 2012, he started providing guidance to people on several issues. It includes, career guidance, Cooperative Housing Societies' legal paper works, Right to Information (RTI), Lokayukta, Ombudsman complaints, Marriage Registration,

Bapoo Malcolm Bapoo Malcolm is an Advocate at the Bombay High Court and a former national cycling champion and a man of many interests. Mr Malcolm is an expert in the mechanics of preparing Wills. He is advocate practising civil and criminal law as well as documentation and arbitration. He also takes up family court matters, redevelopment and MHADA matters and testamentary work, including litigation. Mr Malcolm operates in areas up to Nashik and Valsad and from Igatpuri to Udvada. He has experience in polluti

Jamshed Mistry Jamshed Mistry is a BCom, LLB, DLL & LW. He appears as Counsel in the Supreme Court and in various High Courts all over India. His clients have included several corporate companies as well as public sector corporations and institutions eg. the Reserve Bank of India and the Brihanmumbai Electric Supply and Transport Undertaking. He also works actively for social causes like the rights of disabled persons, beach safety (Goa Action Plan), the setting up of distinct hawking and non-hawking zones in

Shailesh Gandhi Shailesh Gandhi is a graduate in Civil Engineering from IIT Bombay. He was a first generation entrepreneur in plastic packaging and was CMD of Clear Plastics Ltd. At the end of the 90

Abhay Datar Abhay Datar is a consumer activist and is also Member of the Managing Committee of Mumbai Grahak Panchayat (MGP). He was Treasurer at MGP for over two and a half years. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of MGP in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related to mobile and mediclaim. Mr Data

AV Shenoy AV Shenoy hold degrees in both Mechanical and Electrical Engineering from VJTI, University of Bombay and a Post Graduate Diploma in Industrial Management from Jamnalal Bajaj Institute of Management Studies. Worked as a Design Engineer in Electrical Business Group of Larsen & Toubro Ltd. at Powai from October 1969 to September 2001 and retired as Dy. General Manager. Also worked as a Facilitator/Trainer for implementation of Total Quality Management (TQM) and ISO 9000 in the organization. Since r

SD Israni Dr SD Israni is an Advocate & Partner of SD Israni Law Chambers and has over 37 years of experience in the field of Corporate, Commercial and Securities Laws. He has simply written the book on Indian securities laws, copies of which he kindly donated to Moneylife Foundation library. Dr Israni's professional achievements are formidable. He was a member of the Naresh Chandra Committee for simplification of Company Law relating to private and small companies. He has been on SEBI's committee on

Mohana Nair Mohana Nair is an Advocate practising in the Bombay High Court since January 1982. She is a partner at JMB Partners, director at Ugam Solutions and director at Avalon Consulting and has been a Proprietor at Mohana Nair Associates in the past. Ms Nair is a member of the Notary, Greater Mumbai since 1993, a member of the Bombay Bar Association, Intellectual Property Law Practitioners Association and of the Legal Cell of Bombay Chamber of Commerce. Her clients include multinationals, foreign compan

Ashok Ravat Ashok Ravat is a qualified metallurgical engineer from UK in Systems and Operation Research. Being a passionate activist he has dedicated himself to consumer, environment and civic causes all his life. His consumer protection interests include being the Hon. Secretary of the All-India Bank Depositors

Sandeep Jalan Sandeep Jalan is a B Com and a LLB and is on the rolls of the Bar Council of Maharashtra and Goa since March 2010. He has under the guidance of the former Central Information Commissioner Shailesh Gandhi, has provided assistance to the State Information Commission, Mumbai, in strategizing expeditious disposal of 2nd appeals filed there. He is associated with many groups such as Advocates at Supreme Court of India, CSR India (IRDS), Corporate & Legal Professionals of India, Lawyersclubindia, Lead

Sachin Gupta Advocate Sachin Gupta is a BCom, LLB and LLM and also has a diploma in International Law from the London School of Economics. He is currently a partner at Negandhi Shah and Himayutullah, which is one of the leading law firms of India associated with a vast range of commercial transactions involving corporate and civil law issues and provided guidance on legal issues to various privatization projects to major Indian and overseas corporates and to the State

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on legal, RTI, and consumer issues

To ask a question

Please
Sign Up or Sign In
with
Email
than you