Noida: Bank serves eviction notices to flat owners after builder defaults on loan repayment

Scores of families living in a residential society here have claimed they have received eviction notices from Union Bank of India over non-payment of a loan of Rs 78 crore by the builder.

The notice was issued last week to the residents of Gardenia Gateway in Sector 75, asking them to vacate their houses within 15 days, the apartment owners' association said on Wednesday.

"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 alleged that the builder diverted funds instead of repaying the loan and the flat owners ..