sridharan (lecturer) 18 November 2022

Home loan

Sir I had taken home loan from idbi bank bangalore

I have paid emi without any default for nearly 39 month

Once I went to see my plot for construction some one else had constructed a house and he Is the original plot owner

I was duped by the seller and how can a bank without verification of legal papers approve loan

Now the case is with drt bangalore

Again I have filed a police complaint against buyer and bank official, charsheet is done against both

Kindly let me know what to do

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1 Replies

Vishesh Kumar (Advocate Delhi High Court and Supreme Court) 03 February 2025

Hi Mr. Sridharan,

You can challenge the bank’s negligence in granting the loan without proper due diligence by filing a complaint before the Banking Ombudsman under the RBI’s Consumer Protection Framework. Since the bank approved a loan on a fraudulent property, you can also file a case in the consumer court (NCDRC) under the Consumer Protection Act, 2019, seeking compensation for deficiency in service and financial loss.

Since the case is already pending before the Debt Recovery Tribunal (DRT), Bangalore, you should contest the bank’s claim and argue that the loan was sanctioned on a defective title, making them liable for financial loss. You can also file a civil suit for recovery of the paid EMI and damages, citing bank’s negligence in verification.

Now that a chargesheet has been filed against the seller and bank officials, you should pursue the criminal case aggressively, ensuring sections like 420 IPC (cheating), 120B IPC (criminal conspiracy), and relevant sections of the Banking Regulation Act are applied. You can also request the court to attach the assets of the seller and bank officials to recover your losses.

Additionally, you should file an RTI with the bank, asking for all internal reports, due diligence documents, and legal opinion papers regarding your loan approval. If the bank’s internal policies were violated, this can further strengthen your claim in both DRT and consumer court.

If needed further help, get in touch with me at 888-215-3399 on WhatsApp.