Gram panchayat approved layout, planning to buy in 2nd floor flat. what needs to be checked?

It is not wise to go for such an apartment. Once we purchase, the builder will not come to your rescue. If there is a deviation from the approved plan you have to pay a penalty and how much you have to pay is not fixed. That depends.3rd and 4th floors are having no permission. That means the government may go for demolition also. In such a case, you will face some problems. Why purchase problems. I don't think any Nationalised bank will give you a loan. You ask your builder to regularise the plan up to 2nd floor the way it was constructed. Then ask for all the papers like ownership confirmation, link documents, EC and take the opinion of a lawyer who advises you on this, State Bank of India will give loans only after getting a lawyer's acceptance. They will have some lawyers in their panel If you know any such lawyer you show these documents to him and get his opinion. If he gives you consent then you can approach SBI

There are many such cases where the builders deviate from the plan and add storeys or modify the building layout. Actually they should adhere to the Gram Panchayat approved plan only. If they deviate then definitely there will be penalties as without that OC will not be given to the builder. You have to check all the legal documents available with the builder before taking any decision in this matter. So one thing which is very important is that you should consult with a local lawyer who are generally aware of these cases happening in their areas. They will be able to provide a practical and helpful advice in the matter.

Another aspect in the matter is that there will be many people aspiring to buy the flats in this building and they should collectively talk to the builder regarding this issue and pressurise him to get the issue settled at an earliest with the Gram Panchayat. If you make a group of these people then builder will be under pressure and would take the matter seriously. You all can tell him that if he does not clear the matter after paying the penalties to Gram Panchayat then no one will proceed ahead in paying for the flats and other registration facilities.

Generally, such cases are resolved after paying penalties only. Even if you buy the flat at second level which is an approved one, you will not be in problem because if Gram Panchayat sends some demolition order then it would be for 3rd floor and above. Generally the administration does not demolish the new buildings and simply fine and recover penalties. The letters of demolition are only sent to threaten and pressurise the builders for depositing the penalties. These disputes go for a long period and many times some crooked builders elope away from the scene and are not found and in that case, I am afraid that you all will have to share the huge penalties whatever imposed by the Gram Panchayat. Please discuss these points also with the builder and say that you would not be paying all the amount right now in view of such apprehensions. Keep some amount pending and the builder will be on right track.

Prior to moving to the flat of second floor of gram panchayat located in Hyderabad, you will have to take up the following measures so that you are not deceived in the ongoing deal. The following are the underlying points needing your immediate attention-
1) You will have to approach the office of gram panchayat to be familiar with the latest notification relating to housing construction and see if there is any provision of construction of flats on third floor and onwards. If there is no such mention, you need not believe in the tall promises being made by the builder.
2) You will have to verify the credentials of the builder and ensure that he has not made any default in respect of filling IT returns for the conservative three financial year. Also ensure the availability of the relevant papers such as Ownership Confirmation, Link Documents and other related papers connected to the construction. This is essential so that he cannot elop in near future by being a defaulter.
3) Though you want to have a flat in the second floor and it should not pose any problem in case of demolition of illegal flats constructed in the third floors and onwards but still in the event of crisis, all occupants will have to bear the penalty cost imposed by the authorities of gram panchayat.
4) Talk to a reputed lawyer relating to the deviation of the construction and the ways to come out of the present impasse.
5) Meet the officers of Nationalised banks in relation to the approval of the bank loan and in case, they disapprove of the same, stop your deal for good.

Thanks to all the experts for the valuable inputs.
All nationalized banks have denied financing this project saying GP layouts are approved for G+2F only.
If I go for the 2nd floor even then do I have to pay for the penalty or only the 3rd and 4th-floor owners and builder should pay the penalty?
As per the present situation, out of 15 flats, the builder is selling only 4 flats and keeping the rest for himself. He mentioned that due to financial problems (COVID situation), he had to sell some part of the apartment, else he would have made it for rent purposes only.
He has taken permission for residential from GP but making it commercialized by selling some flats.

There were many questions in this section since past couple of years in almost similar lines.
The Panchayats around Hyderabad (Metropolitan Housing Planning area) Panchayat areas are given only limited permissions. The situation there is that builders had constructed extra floors illegally and sometimes allegedly with connivance of the Panchayat officials. They would have dome with a 'taken=for-granted assumption that all these would get regularised in due course under political or popular or some other pressure

However as of now the Hyderabad metropolitan area development authority (or the relevant authority by any name) has taken a strong stand not to accept these illegal constructions nor regularise them as pardon and condoning.

So there is always a risk of demolition of illegal structures hanging above as a Damocles sword. One should be aware and alert about the demolition of three High rise premium buildings in Kerala last year, as even Supreme Court rejected the appeals and petitions of the flat buyers.
The demolition can be only the illegal extra construction or eve the whole construction. We cannot predict it now.

It is just normal and proper that banks will not finance for buying such uncleared or illegal flats.

The builder may promise anything,use flowery and tempting words. But it is the buyer who will be running the risk after paying money. Even the registration may not be done by the Registrar Office.

I would suggest not to take such huge risk with your hard earned money.

Please refer the various answers in similar question in other pages in this AE section by searching using keywords flat in Bachupally, buy 5 th floor flat in Hyderabad etc.