04/08/2026
HUDCO has extended loan to construct houses and sell to different buyers and it was well within the knowledge of HUDCO that flat/duplex have been constructed and sold.
it was a condition to mention in the sale agreement that project is financed by HUDCO and land is mortgage to HUDCO and builder was to take NOC from HUDCO before executing sale deed.
However, builder sold the flat/duplex without obtaining NOC from HUDCO and also hides the fact of land being mortgaged to HUDCO.
Most of the buyers had available home loan from different banks and Financial Institutions like LIC Housing Finance etc and all the banks also financed the loan without any issues. It is sure that banks/FI had advanced the loan knowing fully well that land is mortgaged with HUDCO and Projects is financed by them.
So when a bank/FI were financing the home loan a common man being a bonafide buyer has to believe that project is okay and then only purchased .
Hence the court would appreciate this fact and give relief to the buyers.
Personal property of the borrower including guarantor can be attached for recovery of HUDCO dues.
