what bank will do if i stop paying emi, cheating by builder
Querist :
Anonymous
(Querist) 25 February 2010
This query is : Resolved
Hello,
We have purchased one flat from Rushabh enterprises from mr. Jagat parekh at sep,2007, for that we took loan of rs. 15 lacks from the icici bank. builder told us he will give possesstion after two months because there was no light and water supply. But till date he is not handover our possession. Also we got information that this builder has sold same flat to other 4-5 peoples, and when we asked for possession he was not ready to give the possession even he is not giving us our money back, he has cheated other peoples also who has bought flats in the same building, this whole building is in fault. We have filed a complaint against builder under section 420 and now the case is in a court. Later He gave us a cheque of rs. 35 lacks against our flat which was got bounced and now we have filed complaint against builder under 138 negotiable instrument act. Now the case is in the court and we want to stop our home loan because since last 3 years we are paying EMI of Rs. 16,000/- to the bank and we dont have anything in our hand. What will be the procedure to stop the loan, and what will be the (major) action/s will be taken by bank against us, please suggest the solution on our problem.
Regards
Vaidehi
R.R. KRISHNAA
(Expert) 25 February 2010
You have bought a property (flat) through a fradulent sale done by the builder. No rights accrue from a fradulent sale. As you say that there are many other purchasers for the same flat, it clearly shows that your title is defective and the first person to whom the flat was first conveyed is the only right title holder in any given case.
I suggest you to file a civil suit for recovery of money against the builder and get the full amount refunded and settle the issues with the bank. This is may be done parallely to the criminal case which is pending. Try to vigourously prosecute the case and collect your money. There is no other way out.
B K Raghavendra Rao
(Expert) 25 February 2010
Bank has paid you the money. You have return the money. It is as simple as that. The transaction between you and the builder is not concerned to the bank. You may proceed against the builder to recover money from and complain to the police authorities to punish him for his offences. But the bank will not wait for eventualities in such cases. Bank may issue you a notice and proceed against you for recovery of loan arrears. If the amount borrowed exceeds Rs. 10 lakhs, the bank may take possession of your property under Securitisation (SARFAESI) Act.
You cannot stop the loan. If you stop, you will have to face consequences.
