By Vimal Punmiya,
FCA, LLB (Gen.)
In a bid to have a cutting edge some known institutions
have sanctioned loans to consumers who unfortunately have been cheated by
builders. All consumers need to know relevant laws and their guidelines to
avoid falling into squabbles with builders later. This certainly avoids
dreams from turning into nightmares.
Attorney Vimal Punmiya’s ‘Good Advice’ for NRIs is sure
to help in the long run as plenty of loan schemes floating around are bound
to confuse house-hunters. This is how they can protect their own interests.
Q. Banks have financed loans for buildings which have
illegal FSI thereby abetting the Builder in an alleged nefarious activity.
How can the consumer be protected under such circumstances ?
A. Under the above circumstances it is advisable for the
consumer to go through the plan approved by the Municipal Authorities before
purchasing the property. The consumer however has the option to move to
court against the builder incase of buildings which have illegal FSI. It is
advisable that a specific procedure by introduced for banks whereby they
cannot sanction loans for buildings which have illegal FSI.
Q. Reputed financial institutions like HDC & ICICI have
given loans to people wanting to live in controversial buildings. Should the
finance company or the builder be responsible for clearance of all problems
?
A. The finance companies which gives loans to people are
not responsible but the builder is responsible for the clearance of all
problems in controversial buildings.
Q. What legalities will help the consumer to safeguard
his interest when known companies indulge in malpractices ?
A. A person cannot get a title better than the one the
previous owner has. Therefore the consumer before acquiring property should
inquire regarding the reputation of the builder, BMC occupation certificate
etc. If the above is done then the consumer can safeguard his interest
against malpractices.
Q. Host people fear that the law takes too long to give
justice, In Such cases how long it would take to sort out the problem. How
much money would be involved ot recover ?
An. In India it normally could take anytheirng form 10-15
years for justice to be done. Alternately the aggirved person faster. By
doing this the cost can be reduced adrastrically. On does not need to employ
an authorities copresentation in the case of consumer courts.
Q. Have you come across such a case and how can you
enlighten readers to avoid being trapped in it ?
A. Recently introduced securitization and re-construction of financial
assets and enforcement of security interest At, 2002 has provideded housing
finance companies and banks the power to enforce the mortgage by giving
defaulting borrowers a mere 60 days notice period. If a flat purchaser
defaults in repayments of home loan, installments due, the financial
institutions after giving 60 days notice can take possession of the asset
including the right to transfer by way of lesse, assignment or sale for
realizing the asset.
