Can bank approve project finance to a developer?- Property Hotline

Описание: Expert: Expert: Harsh Roongta CEO, Apnapaisa.com, Home Finance Expert.

Question: I have an undivided share in a property in Punjab. Now, without my consent, the developer has started developing apartments on the land by fraudulent means. He has relinquished the property in his own name regarding which I have filed a civil suit in Punjab court. In the meantime, many private banks have approved project finance to developer by taking an undertaking from him for security of banks money. In such a case, I want to know what is to be done. Is the bank authorized to do so as it will result home buyers and huge damages and even create major litigation. Is there any RBI guideline for it?

Answer: This is not a matter of regulation but straight forward legal issue for which you have legal options. You can off course try and use social media to attract the attention of the top management of the concerned banks (if they are private sector banks). For public sector banks you can try and use RTI to find out the basis on which the project has been approved by the bank. You can then use this information to write to the members of the board of directors of the bank especially the independent directors, if you create sufficient pressure it will at least ensure a review of the points raised by you.

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