THE BUILDER SAID "ALL APPROVALS IN PLACE." OUR VERIFICATION FOUND 4 MISSING PERMISSIONS.

The Builder Said "All Approvals in Place." Our Verification Found 4 Missing Permissions.

About the Client

A Gurugram-based NBFC that provides home loans and construction finance. The NBFC had received a loan application from a builder who wanted ₹18 crore as construction finance for a 24-unit residential apartment project in Sector 56, Golf Course Road.

What Was the Client's Requirement

Before approving the construction finance, the NBFC needed SPJ Advocates to verify land ownership, building approvals, environmental clearances, and regulatory compliance. The builder had submitted a thick file claiming "all approvals are in place."

What Our Verification Found following problems:

• Missing Permission from Environmental Deptt.: The project required an EC from the State Environment Impact Assessment Authority. The builder had not even applied for it.
• Fire NOC Was Expired: The Fire NOC was issued for an earlier, smaller plan. The current project had added two extra floors without Fire Department approval.
• No RERA Registration: The project was not registered with HRERA. Every booking the builder had taken was technically illegal.
• Wrong Land Use Certificate: The land had a CLU for "commercial" use, not "residential." Building residential apartments on commercial CLU land can lead to demolition.

How We Reported This

We submitted a detailed Property Verification Report with a clear recommendation: DO NOT APPROVE THE CONSTRUCTION FINANCE. The report included document-by-document verification, clear identification of the 4 missing permissions, and risk analysis for the NBFC.

The Result

The NBFC rejected the loan application. Six months later, the GMDA issued a notice to the builder for the land use violation — exactly as we had warned. The builder's project was delayed by over a year.

The NBFC's risk team told us: "If we had approved that ₹18 crore without your verification, we would have been sitting on a dead asset with no way to recover the money."

Financing a real estate project? Don't trust the builder's paperwork alone. Get an independent verification.

📞 Call SPJ Advocates : +91-8920245815