Piyush Heights - IDBI Bank not releasing further payment

[dube_s]

I just came to know from IDBI bank that they are not releasing further disbursement of loan for Piyush Height. Reason is - Piyush group has not deposited the EDC amount to government & a court case has been initiated. Unless this is getting settled, no further disbursement will be will be done for Piyush Heights. This is only a verbal communication from the bank.

Is the any forum member belongs to Piyush Heights received this type of information from Bank ?

With Regards

[dheerajjain]

To resolve this, builders in Greater Faridabad should pay their original EDC dues to Govt. as soon as possible. As per documents available with GFWA and posted in exclusive section, builders have not paid even 60% of original EDC that they collected from us in 2006-07. Otherwise, more banks will follow and stop loan disbursements.

[subodh_dipali]

Dheeraj,
LIC Housing executive told me that in construction linked payment plan,bank/lender agency is suppose to check status of site before releasing money against demand notice.There are incident (NOT Faridabad)when bank rejected their demands when they were not satisfied becoz of gap in the site status.As per him bank issues the letter stating the reason for not releasing the funds.This letter saves customer from builder against thier demand of late payment and interset on it.

I suggest we should take legal opinion on this type of cases which are increasing

regards

subodh manchanda

[dheerajjain]

Thanks, Subodh for your views. Nice to see your post after long time.

With regards to payment of demands, I also met manager of my home loan banker. Banker clearly told me verbally that unless Piyush Group shows the bank the receipts of EDC/IDC payments to Govt., they will not be releasing any further amount against any of demands. He also made a very clear distinction of financing to builder VS financing for project. He told me that they finance project NOT the builder. Project has all necessary approvals by Govt. and entire project is 76% to 79% complete. So, even if in extreme case, Govt. cancels the licence of builder due to non-payment of EDC/IDC, project will still be safe and will be taken by Govt. for giving possession to home buyers.