Promoter defaults on loan, RERA rescues flat owners

Halts recovery proceedings by finance co after builder defaults on repayment of loan taken against flats in Satellite's Floris 41

The Gujarat Real Estate Regulatory Authority (GUJRERA) has come to the rescue of 24 flat owners of Floris 41 apartment located in the posh Jodhpur locality of Satellite area. A three-member bench of RERA has restrained the finance company from taking any action for defaulting on the payment of a loan taken by the apartment's promoter.

The flat owners approached RERA as they were facing action by the finance entity under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, commonly known as the SARFAESI Act.

Under this act, the bank or finance company can take possession of the mortgaged property against the loans.