• Default of plot loan

Dear Sir,
I have purchase a residential plot in Gr.Noida in July 2017 with the help of bank loan. Total cost of plot is 40 lac appx.loan approved 28 Lacs, INR 19 Lac paid to builder (15 lac from loan and 4 lac by own arrangements) agreement done registry is proposed to be done after one year.
Now the issue arises that I losses my job and not unable to pay EMI to bank as well as unable to pay our contribution part to builder. A tri party agreement also executed with builder,bank and myself.In builder buyer agreement builder mentioned that In case of cancellation of said property they will deduct panelty 25% of total cost of plot i.e.10 lac appx.but here I am not cancelling property we are going to be default to bank side.
My question is that
1- If I stop to pay EMI to bank what will be the consequences? 
2-what steps should I need to do? 
3-Either bank will recover the total loan amount disbursed from builder directly or will ask to pay me?
4-Is there any criminal case or impressionment is possible in this case?

Regards,
Yogesh Kumar
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 10 minutes.

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10 Answers

Hi, there can be no criminal proceedings of your default on EMI .. The bank can recover money by auctioning the plot under SARFASI ACT .. It is advisable to surrender the flat and ask for refund from the builder ..

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

home loan is a secured advance and your home is actually mortgaged to the bank. If you have any genuine reason for inability to repay the loan(like natural disaster that affected your locality etc)talk with Branch manager in advance. If you are missing your EMIs it will be reflecting in your CIBIL/other similar companies reports which will affect your credibility on availing future loans. Once the loan account become Non performing asset(missing 3 monts EMI) bank will take steps to auction your house and adjust the loan accordingly.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

Bank will auction the plot

2) in case sale proceeds is lower than loan amount bank will sue you to recover balance amount

3) if you ha ve issued any post dated cheque bank present the chequesamd on dishonour file complaint under section 138 NI

Ajay Sethi
Advocate, Mumbai
87912 Answers
6207 Consultations

5.0 on 5.0

Hi, it is advisable to file a complaint at RERA against builder for asking refund ... The loan will be recovered from you mad if the account become NPA , bank can proceed under SARFASI ACT

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

Find a buyer for your plot

Then tripartite agreement can be executed fir sake of plot

Bank loan can be transferred in name of purchaser

Ajay Sethi
Advocate, Mumbai
87912 Answers
6207 Consultations

5.0 on 5.0

Firslty, Sir, as it has been stated in your query that loan was approved by the bank, and I believe that if the same is approved on the basis of your salary or on the basis on some other collateral property.

Secondly, if it is on the salary then bank may file a case for recovery of money where your other property may be ordered to be attached if you not been able to pay.

Thirdly, and if it is on some property then that property may be attached by the bank.

Fourthly, no criminal case arises out of your non payment.

Fifthly, and yes builder may deduct the same amount as it is there in the agreement.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

1. Bank & Builder, are in no way liable to each other, in any way, whatsoever. The cancellation can take place between you and the Bank and the builder has no role to play, after receipt of his money.

2. The Bank will deal with you for all purposes, including Auction the property, for default of Loan. You can pursuade the Bank to extend the Loan Tenure, so that EMI amount becomes smaller and affordable for you to pay. Later when you have money, just simply repay the bank on lumpsum basis and finish the loan.

3. Better find any buyer for your property and get NOC from Bank to Sell and dispose of the property amicably. If you sell /transfer the property without Bank NOC, THEN you will become liable for criminal prosecutions.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

You will be asked to pay and will take the possession of the plot. You may go for settlement of loan if possible.

You will not be arrested for default as the property is mortgaged as security.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

If you stop paying the EMI Loan repayments, then the bank can initiate action to declare your account as NPA.

After that bank will initiate legal action for recovery through the provisions of sarfaesi act.

You will not be able to do anything if the bank takes physical possession of the property.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

The bank loan repayment is being paid you, hence you only will be liable for that.

The bank may take possession of the property by which you may lose the amount in full.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

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