Buyers beware, you can lose your property if the developer defaults

If the builder has defaulted to a lender and the latter wants to take possession of the property, homebuyers should approach debt recovery tribunal for a stay order

Recently, over 200 families living in the Noida housing society Gardenia Gateway were shocked when they received an eviction notice from the Union Bank of India. The notice said that the developer – Gardenia India – had taken a loan of Rs 78.45 crore and had defaulted, according to reports. Since the developer had mortgaged the project for the loan, the bank said it was well within its rights to attach the property to recover the debt, the notice said.

If a developer has mortgaged a project to a lender and defaulted, the bank can take possession of the property, according