30 days post registration — seller not providing foreclosure letter from NBFC. Suspicious delay. Need advice.
Purchased a resale 1BHK in Mumbai beyond Mira - Virar (₹40L deal). Here's the timeline:
10th April — Registration done. Paid ₹6L down payment + ₹2.8L stamp duty + ₹30K registration and 15k society charges
10th April — Seller promised to apply for foreclosure letter same day (property has existing NBFC loan)
24th April — I followed up. Seller said "Mahindra Finance is taking time"
24th April — Broker told me it takes 21 days
12th May — Still no foreclosure letter, no LOD. Same vague updates
Current situation:
My bank is ready to disburse but needs foreclosure letter + LOD from seller's NBFC. Without this my bank can't process disbursement. Seller's only job is to walk into Mahindra Finance and request a foreclosure statement — this takes 1-2 days max. 30 days with no resolution feels intentional.
My concerns:
Is seller stalling deliberately? Another buyer? Loan issue?
My sale agreement has a clause — remaining amount to be paid within 46 working days of registration. That clock is ticking
I want to shift before monsoon (mid June) but doesn't look possible at this rate
Meeting seller and broker this Saturday to confront directly
My options as I see it:
Give firm deadline — foreclosure letter by specific date or cancel
Mutual cancellation — demand full refund of down payment + stamp duty + registration + society charges since delay is entirely from seller side
Legal notice
Questions:
Has anyone dealt with NBFC foreclosure delays in resale transactions?
Is 30 days normal for Mahindra Finance foreclosure statement?
If I go for mutual cancellation due to seller's delay, can I legally recover stamp duty and registration charges?
Any red flags I should watch for Saturday's meeting?
Any advice appreciated. First time buyer here and this is getting stressful.