Laws laid down by supreme court




                                             During the last decade ,builders have marketed  with the customers with a new attractive idea and  offer –enter into tripartite agreement between the buyer ,seller and the bank for loan. The scheme  entitles the buyer of flat/house/ to get loan for any huge amount of around twenty lacs  to be repaid in instalments spread over for as many as twenty years.The attraction  for the customer is that he is not to pay any instalment till the construction is complete . Builder says-‘Dear buyer ,you need not worry for payment of instalments ,I shall pay all till you are given possession of your flat. You only have to pay balance instalments when construction is complete .Just relax, take loan and wait for your sweet home’

There is absolutely no betrayal from promise .Bank advances the entire amount ,say twenty lacs in one go strait to the builder.Builder gets entire amount needed for construction from all allottees ,starts his project spending no single money from his pocket .On the other hand ,buyers has parted with entire construction cost , taken on loan in one go where  as per the scheme ,payment needs to be made on construction based scheduling of payment. Now builder pays instalments of interest on the loan taken by the buyer till the construction is over and during the course ,attracts more buyers,books more flats as the construction proceeds . He looses nothing but instalments to be paid start from the day one in a manner that huge amount of interest is paid in early instalments and principal amount at later stage . With the result,when construction is over,possession is given ,he is left with almost entire principal amount yet to be paid .he is under loan for  ten –fifteen forth coming years,Builder has paid only interest till then.In other words ,he has used your money and paid interest to the bank

There are in between situations when buyer is shocked-

·         When construction does not start due to any reason,(non-approvals from authorities,short of funds) builder does not pay instalment of interest to bank and bank asks you to pay the instalment.-you really do not know you  have agreed the terms

·         In case bank is to pay loan to the builder as per construction based scheduling  and when construction does not start ,bank stops release of payments further,builder threatens to cancel the booking due to non payment –you might have agreed this clause too.Builder may give hundred reasons for snon start of construction.You may go on writing with no response .

·         Even you have not agreed any such adverse terms but the fact remains-you have applied for loan,loan is sanctioned, payment released ,instalments are to be paid either by buyer or by the builder. Bank has to recover the loan and failure on the part of any one ,flat is under mortgage to bank . Buyer is barred to get possession

           These are the cases coming up before the consumer courts.If every thing goes well ,it is good planning for getting home in the heart of city but if it fails ,consumer must understand the consequences of  such agreements.


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