Tripathi RR (Professional) 18 March 2009

Query on a Bank Home Loan dispute

Hi Fellow Legal Eagles,

I wanted to confirm with you if the following matter constitutes to be illegal act on behalf of the Bank.

I approached for a home loan from a leading PSU Bank in 2007 they sanctioned my application and prepared a PAY ORDER of the same amout.

As the property was not yet registered in my name the Bank asked me to sign a letter stating that the PAY ORDER would be released once the registration was duly completed between me and the property developer.

As there were some personal issues with the developer he kept delaying the whole process.

And the time arrived for payment of my first instalment. I paid my first EMI. And as time went by the developer did not complete my flat and neither did he come forward to register it. And in this melee i paid six EMIs to the bank.

After six months of bank loan the developer and i decided to end the agreement of sale as i was unhappy at his ways. I approached the bank and asked for cancellation of the loan and also i requested them to return all my EMIs (6 in total)

The Bank's sales team who had helped me get the loan assured me that they would get my EMIs back. But in a few weeks time all changed and the bank said that they needed more money from my side. I gave them the money as I wanted to settle the matter and as i was assured that i would be getting all my EMIs back.

But after taking the money and after having closed the loan the Bank started refusing my letters, my calls. I was told by the Branch Head of Loans that they will not refund any money.

Therefore:

I want to know if I can sue the bank and under which laws?

I would like to know if there is a way out for me and what course should i take.

Looking for your adive.

Thanks

Reply Follow

4 Replies

n.k.sarin (advocate) 18 March 2009

Dear Tripathi ji,this is a simple civil matter.You have two option open, one is to move civil court to get back your emi with interest and you can also claim for harrasment. Other way is to go to Distt consumer forum file a complaint narrating all the facts. here you can get your EMI back with cost and special cost.

N.k.sarin,Dehradun

Y V Vishweshwar Rao (Advocate ) 19 March 2009

The Loan amout apears to be not disburded and loan proceeds are not paid to your vendor .How the repayment Schedule commenced EMI-??? The Pay order was expected to to be givne to your Vendor at the time of Registration of the Sale deed .

You can file complaint befoee the Banks abudsman or file case befroe the Consuer Form .

jayaselan j k (all in all advocate) 20 March 2009

hey!

apart form the above stated ways to approach courts you can also file complaint before police and if no action taken you can file a private complaint under section 200 crpc for offence under section 405 and 420 of Indian Penal Code and other sections related thereto and this will yield faster remedy tthan any proceedings and the gulprits will be penalised quickly or the matter will be settled as per your wish