Home Loans and Law for NRI’s

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.
It seems that the proposed rail link connecting Kurla & Bandra which remained in the planning stage for so many years has been dropped altogether. In fact this rail link was planned several years before the Ghatkopar – Versova metro (which is now being implemented) was proposed but for reasons best known to the authorities concerned, it remained a non-starter. It is indeed strange that this link which is lot more important and vital than any other projects to improve the infrastructure of the city was never given any priority.
While it is true that with increasing population this mega city will require more connecting corridors including Ghatkopar-Versova one fails to understand the logic in dropping the Bandra-Kurla corridor altogether.
Bandra and Kurla are perhaps the most important strategically located suburbs on Western & Central Railway respectively. Kurla has also an additional advantage of being linked to Harbour Line connecting Chembur, New Bombay & also the stations on south side between Kurla & V.T.
Presently the commuters wanting to travel from Central Suburbs beyond Kurla such as Ghatkopar, Vikhroli, Bhandup, Mulund and onwards to Western Suburbs beyond Bandra, such as Khar, Santacruz, Vile Parle, Andheri, and beyond and vis-a-versa have to perforce come to Dadar railway station for changing from one railway to another. With more than 8 ~ 10 million people staying beyond Kurla/Bandra in Central and Western Suburbs respectively in MMRDA region and traveling in the direct train from Central Railway to Western Railway via Bandra – Kurla is such a dire necessity that one wonders as to how for so many years it has never been given the priority it deserves.
The plight of the commuters at Dadar Railway station trying to get in and out of the train on both the railways is indeed terrible. There is a tremendous rush. The connecting bridge is so heavily overcrowded. A situation such as this must be unprecedented anywhere else in the world. It is simply a nightmare. If data is collected of the total number of people perforce required to change from one Railway to other at Dadar Station, it will immediately highlight the pressing need of this link. Considering the number of man hours saved, and the reduced hardships of the commuters the cost benefit ratio will far out weigh the cost of the link.
This vital link will alleviate not only the extreme hardships suffered by such a large number of commuters but will also save their precious time. Their journey time to travel from Kurla to Dadar and then from Dadar to Bandra or vice versa will be reduced substantially. The distance between Bandra-Kurla is approximately 4 kms as against approximately 12 kms of distance required to be traveled now. Even by a most conservative estimate there will be a saving in time of at least 20/25 minutes per commuter. (This would include the time spent to commute from one platform to other and the awaiting time spent on the other railway to catch the train). This link can also reduce the traveling time for commuters traveling to and fro from New Bombay and commuting to Bandra and beyond via harbour line as their present journey via Chunabatti, Tilak Nagar, Wadala, King Circle, Mahim route is much longer than Bandra-Kurla direct route as will be seen from the enclosed illustration. There are hardly 2 or 3 direct trains linking New Bombay with Western Suburbs. It is not clear as to whether the Ghatkopar – Versova metro will be linked with present Central & Western Railway & whether there will be a direct link connecting train between Central & Western
Railway via this route. However even assuming that there will be a direct connecting link available between the two zonal corridors via this new metro connecting Andheri & Ghatkopar, the Bandra-Kurla will still serve this purpose better because of the fact that both Bandra and Kurla are now major terminals for long distance trains for Central and Western railways and the passengers wanting to reach Bandra or Kurla have to perforce depend on a taxi/ autorickshaw for conveyance to reach the terminals adding to their hardships and cost. This link can be planned in such a manner so as to include both Bandra and Kurla terminals, both of which are away from Bandra & Kurla suburban stations. It could be made possible to reach both these terminals from either Central or Western side directly without being required to get down at Bandra or Kurla suburban stations and catch a vehicle from outside the station. A shuttle service of one or two bogies can be operated between these two terminals joining them with Bandra and Kurla suburban Stations.
With Bandra-Kurla commercial complex being developed as a full fledged commercial district housing headquarters of several important private/ public sector companies including India’s largest diamond bourse spread over an area of nearly 2 million sq. ft and also a large convention centre the link will provide direct access to this complex and will reduce the surface traffic on road between Bandra & Kurla and reduce overall congestion in this entire region. Lots of land between Bandra – Kurla has vested with MMRDA and there would be no difficulty to get this land for completing this corridor.
The Bandra-Kurla distance is much less than Andheri – Ghatkopar and its faster implementation will immediately bring relief to vast no. of commuters who have to literally undergo an ordeal while changing from Central Railway to Western or viceversa at Dadar. It is hoped that considering the above factors the proposal of Bandra-Kurla link will be revived by the State Government and the Railway authorities.