Buyer is liable if builder fails to pay his EMI

The National Commission observed that the loan agreement entitled the bank to recover the EMI from the purchaser if the builder failed to pay on his behalf

Rajesh Lifespaces and Rajsanket Realty had launched a group housing project called Raj Infinia at Borivali in Mumbai. Its advertising campaign said that a flat could be purchased in the project under a ‘subvention scheme’, which provided that the flat purchaser would have to pay 20 per cent of the cost and the remaining 80 per cent would be financed by ICICI Bank.

Akshay Gupta expressed interest in acquiring a flat under this scheme. It was explained to him that the subvention scheme provided for finance of 80 per cent of the cost of the flat. The equated monthly instalment (EMIs)