|| Author: Duncan Riley|

State Bank Of India Tripartite Agreement

Mahesh Natani, an Indore-based consumer activist who, along with his friend, led the Reserve Bank of India (RBI) to give daily instructions to banks to calculate interest on savings bank accounts, questioned banks` practice of indirect financing of project owners. He had also filed several applications with public sector banks under the Freedom of Information Act 2005 (ITR). The tripartite agreement should represent the developer or seller who states that the property has clear title. In addition, it is also worth mentioning that the developer has not entered into any new contract with any other party for the sale of the property. For example, the Maharashtra Ownership of Flats Act, 1963, requires full disclosure from the seller/developer to the buyer on all details relevant to the purchased property. The tripartite agreement should also include the developer`s obligations to construct the building in accordance with approved plans and specifications approved by the local authority. In a letter to DK Mittal, secretary of the Ministry of Financial Services, Natani said state-of-law lenders are reluctant to disclose information or data on loans under “tripartite agreements.” The three public sector banks responded to Mr. Natani`s requests under the RTI Act. Mr. Natani stated that he had sent a letter to the RBI on this matter on October 13, 2010. “Under the law, any developer who builds a housing company must enter into a written tripartite agreement with any buyer who has already purchased an apartment in the project or is about to buy an apartment,” says Vijay Gupta, CMD, Orris Infrastructures. . .

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