Around 200 families in a residential complex here heaved a sigh of relief on Wednesday after the Union Bank of India withdrew eviction notices it had issued to them over non-payment of a loan of Rs 78 crore by the builder. The state-run bank had on August 5 issued the notices to the residents of Garden Gateway in Sector 75, asking them to vacate their houses by August 20, the apartment owners' association had said.
The bank, however, withdrew the notices on Wednesday evening after there was outrage over the matter. Referring to its notices to the flat owners, the bank's asset recovery branch, Delhi, stated in a communication to them "we hereby inform you that the said intimation dated August 5, 2019, has been withdrawn with immediate effect".
According to the bank's notices, the housing project was mortgaged as security by the builder of Gardenia India Limited for the loan. The due amount stood at Rs 78.45 lakh on December 31, 2015, and interest thereon. The notices had said that the bank was initiating action since the borrower had "defaulted in payment of the said amount".
It asked the flat owners to "vacate the premises within 15 days of receipt of the notice to avoid any further inconvenience". Earlier, the apartment owners' association had claimed that the residents had made full payment for their flats and were not aware of the builder taking the loan by mortgaging the project.
"The bank had given a loan of Rs 78 crore to Gardenia India Limited four years ago for construction (of the society). However, the construction of the project was already complete (by then). Several people had made full payments and purchased flats in the society around four years ago," said a statement signed by the association's president B S Lavania, vice president A K Jaiswal and secretary Rakesh Kumaria. The flat owners had not been informed about this loan given by the bank to the "fraud builder", it said.
The association had alleged that the builder "diverted funds" instead of repaying the loan and the flat owners were being "unnecessarily harassed". Residents of the society were relieved after the bank withdrew its notice.
"It's total relief now. There's no more fear," Jaiswal, who has been living in the society for the last three years, told PTI. "Some problems still remain. The project does not have an occupancy certificate (OC) from the Noida Authority and flat owners do not have registry for their properties and we hope that the issues are sorted soon," he said.
"The builder had promised facilities like swimming pool and club in the society but is yet to deliver on that," he added. Another resident claimed that the builder owes crores in dues to the Noida Authority and that is why the registries have not been done.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)