Builder directed to repay bank loan availed by homebuyers owing to delay

According to a complaint filed by homebuyers Deepak Mehta and Chandan Bala, they booked an apartment in Kilpauk with BBCL Developers (India) Pvt Ltd in 2016 and paid a total sum of Rs. 5.37 Crore.

"The respondent undertook to complete the construction and handover the constructed flat by December 2018 with a grace period of 6 months. The complainants made payments and also availed loan from the second respondent (HDFC) for the purchase of the flat. The builder requested payment even before the same was due in collision with the second respondent. In spite if this, the first respondent was not able to complete construction before the agreed time," the complaints alleged.

However, the first respondent argued that the application for completion certificate was made in 2017 before RERA Act came into force.

Meanwhile, the second respondent countered by claiming that the homebuyers defaulted in payment of the loan and denied the allegations of collusion with the first respondent.

After hearing both the sides, adjudicating officer G Saravanan observed that the completion certificate was obtained only in December 2020, after one and a half years from the promised date of delivery of the flat.

"As per the version of the second respondent, they disbursed Rs. 5.17 Crore in favor of the first respondent on behalf of the complainants. Therefore, whatever the amount, the complainants are entitled under this order is directed to be paid to the second respondent towards the satisfaction of the loan on account of the complainants," Saravanan said.

Apart from directing the builder to pay Rs. 1.50 Lakh to the homebuyers, the adjudicating officer directed the builder to repay the loan amount due with interest to the bank.