Icici home loan default due to wakf problem

Banks normally trace the title 13 years and obtain latest Encumbrance Certificate (EC) before sanctioning Housing Loan. In your case also a Legal Report must have been taken and EC obtained.  Only when there is clear title,  loans are given.However, despite the efforts of the Banks to safeguard their loan, Borrower cannot blame the bank if a dispute on the land arises subsequently.

Surprisingly in your case name of Aurangzeb is invoked to grab the land. When you have the link document and the land has been under your posession (your father and later yourself) you should have gone to Court   against the people who are trying to claim the property with some strange story. Instead, you have chosen to discard the property, which is not correct.

Bank's are not responsible for the disputes on the property on which they give loan, even when such property is taken as prime security.  You are liable to pay the loan taken from the Bank and until then the CIBIL rating shall not be changed.

Having taken the loan from the Bank, it is the basic responsibility of the borrower to repay the loan. You cannot blame the bank for some unreasonable dispute you got into, which you chose not to fight but simply left out the property. By discarding the property alongwith the structure you have built with the loan from Bank shall not absolve you from the responsibility of repaying the loan to the Bank.

Approach a senior lawyer dealing in revenue/civil/property matters with all docs on record and understand the merits and remedies to proceed further.

Consult with a Senior Counsel of your High Court.  According to various notifications of RBI after sanctioning and payment of Home loan if any question arises regarding the title of the secured assets the borrower shall be liable to face it and on such ground he cannot defy payment of EMI in time.

If the property was purchased genuinely by your father after verifying the title deeds properly then you should have contested the decision of the Registrar in a court of law and simultaneously the bank should have been informed about this dispute and should have a taken a direction from court to bank about the ongoing dispute hence the loan status t remain as status quo during the period of dispute until the case is disposed.   Though the court will not interfere in the loan issues, this would have conveyed the bank some message to deal with the matter accordingly.  

Now since the matter of loan is pending the cibil ratings cannot be improved until the loan amount due to bak is cleared, talk with the bankers and look for some possible solution. 

Thank you for your valuable replies sirs. I found out lately the reason why the icici emi's aren't paid. This is short summary as follows from the old emails exchanged between us and Icici bank. which I didnt mention last time.

. After several consultations with the bank they asked us to send wakf dispute notices through courier to its hyderbad icici bank. And we requested through a written letter to stop pre emi’s (as construction stopped unconditionally) and requested icici bank to start emi’s for the used amount of 16 lakhs for payment( all this happened in the year 2007)

 We waited for there response, Instead they choose smartly and started emi for 16 lakhs  from 2009 dec  and asked us to pay pemi  until 2009 dec.  At this point for past 24 months they never sent a statement or contacted us. Our only dispute with Icici bank is that they are asking us to pay pemi which solely icici banks miscommunication and we were no way responsible(even after written letter request was submitted in 2007 to fix emis not pemi).

Later we explained this to icici through emails , when ever they emailed us for pemi and emi payments. They didn’t bother to respond to us regarding our queries, so we gave up the property due to wakf problem and didn’t  bother to there emi’s.