Sanction plan from gram panchayat & deviation

[vikrantgouda]

I am planning to buy a flat in Gottigere measuring 900 sqft. HDFC & Indiabulls have rejected my loan application stating that the Sanction plan is not BBMP Approved & has deviation.
Let me explain the senerio - The apt was built in 2005 when it was under gram Panchayat, also there is a horizontal deviation i.e he has constructed 12 flats in each floor instead of 10 as per sanction plan(i.e 48 flats instead of 40 in G+3) by reducing the built up area. The owner also has the BBMP A Khata Certificatefor that flat.
When i enquired With BBMP Persons, they told that the area got converted from panchayat limits to BBMP in recent years, so they have given Katha certificate to all those who had Panchayat katha in that area, & didnt require Plan for the same.

I am confused weather to go for that property or no. PLease kindly guide me if this would create a problem for me future.
Thanks & Regards,
Vikrant
9901091415