I have taken loan from HDFC Bank for one 2 BHK property in Jaipur Tonk Road (Aastha Coral Residency, tonk road Jaipur). I discussed with HDFC bank regarding the same and they are saying that construction of this property is stopped sometime back and they dont have idea when it will start again. Because of this reason I stopped paying my Pre-EMI to bank from last 3 months. I have left with no option, i asked the bank why you released complete amount when i taken the loan in 2013, they are saying they paid this amount because that time construction was going on. Now Home Loan recovery team is keep sending mail, called to make the payment of this loan. I told them if construction is on hold then why i can pay you, I dont have any other option. I am thinking to resale this property in very less rate now and pay the amount to bank. Please suggest what I should do in this case, I know that not paying the EMI to bank is not the good option, they can seize my all bank accounts and recover the money, what i should do in this case, this me very long pending problem for me now. I dont have clear Idea about the legal action but i know it will going to take long time and I am also not living in Jaipur, I am working in bangloare.
1) if you dont pay loan amount bank can sue you to recover the loan amount with interest
2) if no construction is being carried out and project is registered with RERA cancel your booking and seek refund of your money
3) if builder fails to pay file complaint against builder before RERA and seek refund of your money
4) money received can be used to repay bank dues
See not paying EMI is not good option pay the pending EMI to bank , further you can prefer complaint against builder if there is delay in project and seek compensation from the builder for delay in completition. A RERA complaint can be filed against the builder/developer.
Further in my view it won't be a good idea of selling the flat at lower price you can seek relief against the builder.
Hello,
You go to the consumer forum or RERA (if applicable) and ask the builder to refund the entire amount with interest.
Get in touch with a local lawyer with a copy of agreement to sale etc.
Regardsd
1) First its bank's mistake that why they had released full amount of the loan as OC ans CC certificate is not received by the builder.
2) Plus they can start collecting EMI unless and until possession is taken by purchaser of the flat.
3) Bank kas to take responsibility of completion of project and X amount should have kept as balance.
4) Now check how much percent building work has been completed and set amount accordingly and get set EMI of that much amount.
Your contract with Bank is independent of your contract with the builder unless specifically mentioned. You need to find remedy elsewhere. Consumer complaints court is the best place for this.
1. IT seems to be a racket by the builder /developer to hood-wink property buyers and seems that bank manager too is involved.
2. You can depute a "authorized representative or a POA holder" to file a grievance petition before the Jaipur Consumer Court, against the builders deficiency, negligence and harassment and claim damages and compensation and loss of interest.
3. You will not be able to stop the Bank EMI, since it will create complications and spoil your CIBIL ratings too.
Keep Smiling .... Hemant Agarwal
Dear Sir,
You can sue both the builder and bank since both of them clearly colluded with each other. You can even initiate criminal action.
ideally the bank should have disbursed the loan in tranches on basis of demand notice issued by builder informing that a particular slab of the building is completed
so the payment ought to be made by bank slab wise and not in one go
since the bank has already made payment to builder, you are obligated to pay the pre EMI
your remedy lies thus against the builder
as the builder has stopped construction work, you will have to approach RERA Court
i assume the builder has registered the project with RERA
you will have to claim refund of your money with interest and also claim compensation and damages from builder
i also assume you have a registered agreement because without it the bank would not release the loan amount
as you are not in Jaipur, you can give a power of attorney to your relative in Jaipur who can file the RERA complaint on your behalf
Dear sir,
In the instant case, the bank is not the defaulter. Rather the defaulter is the promoter. The requisite clause is generally given in builder buyer agreement and you may send a notice to builder to pay EMI on your behalf. You may also file a complaint against builder.
Thank you so much everyone for your very quick response my Issue. After hear your answer I learned that I need to take all below action against the builder and bank. Criminal case RERA complain (Real Estate Regulatory Authority) Consumer Court Cancel the Booking & Get the Refund Send a notice to builder to pay EMI on my behalf For this to start I need to hire one experienced lawyer In Jaipur only. My problem is I am not living in Jaipur and I am thinking does Lawyer can take all the actions in behalf of me, I may not want to visit everytime from Bangalore to Jaipur. Science I already stopped the Pre-EMI and I know that Bank and builders both Involved in this fraud and this is very common issue now a days, Builder can take complete money and they are not constructing the flat. Excuse what Builder given to me is that because of Modi note ban and GST we are is big loss and we don’t have money to start the construction again, we know your problem but we can't do anything. Then why should i Pay EMI to them, let my score goes down and does they can blocked my all bank accounts, does anyone answer this please. Anyway I will hire lawyer in this case but still I wanted to ask that what are all action bank recovery team can take against me because at the end I only sign the loan document and if now no progress in this construction still They can take action against me only. Please guide. Anyway I am going to hire one experienced and known lawyer in Jaipur very soon as this is the only option to get the money back, also how much time it will take if I take all those above action against them. If note bank created this problem, this is not right excuse, why bank released 90% of loan amount to builder they don’t have any answer, they are just saying that time when released the money, construction was going on but now they stopped the work because of no money, they are trying to get money to start work again.
1) number of lawyers on this website from Jaipur . contact any of them
2) bank can take recovery proceedings against you to recover loan amount with interest
3) there must be clause in your agreement that payment would be released by bank depending upon progress in construction . check whether bank has released payment accordingly or not
See you cannot take all action you can file a police complaint along that either you can approach consumer court or seek relief under RERA you cannot pray same relief before both forums.
Secondly bank can intimate the Sarfesi proceedings and can attach the property or mortgage or security kept with bank they shall not attach the bank accounts.
You are right you don't have to pay the emi. You can stop the same and file complaint against bank and builder to consumer court. Rera is also a good option but only against builder and not bank.
Ok thank you. Now I have question. 1) How much time it will take to complete this process. Does it will take months or years, because I already stopped the Pre-EMI from 3 months now and Banks is already contacted me multiple times. If it is going to take long time then In between I am thinking to put advertisement of this flat online and try to resale in very less price, in this case i will be in big loss but this is also one option. 2) I also wanted to know what are all action HDFC bank can take against me. I hear online that they can block my all the bank accounts and recover the money. Is it true ? 3) Also does bank has this option to seize the property and recover the money ? please confirm. I already got mail from bank that: The amount pertaining to your loan account has been adjusted,from the above. or does I need to visit bank and confirm about this mail. my account is in different bank and loan taken from different bank. Why I am liable to pay if they are not liable to construct property on time and now even they stopped the construction also.
Since you have signed loan agreement with bank and bank has disbursed funds to builder you are liable to repay loan even if builder fails to carry on construction
2) since property is mortgaged to bank itcan auction flat for non payment of dues and sue yiu to recover the shortfall if any
3) cases before RERA woukd be disposed of in 3 months time or so
Any action in Indian courts take time.
You can take stay on all coercive action taken by bank and builders. All matters will be heard on merits. Even if they freeze your account then you can unfreeze them through courts order.
For being on more safer side close all accounts and FDs with that bank and transfer to some other bank.
1. if matter goes to RERA court, then it will take some months. Take 3-4 months
Since flat is mortgaged to bank, you cannot sell it without bank NOC. Also original title papers is with bank. You would need that to give to buyer. The bank will not release original papers unless its loan is repaid
2. bank can take action against you under SARFAESI Act
3. yes it does
4. please go and check with the bank which account they have adjusted against the outstanding loan
5. you are liable because bank has already disbursed the loan to the builder. Your remedy is against the builder. Also you can complain against the bank for disbursing the loan in one shot when ideally it should be disbursed slab wise as the construction work progresses
Hi,
You need to first send a legal notice to bank and builder and start your case from RERA. It does not take more than a year for decision of the case. The bank may take actions for recovery of loan but it will follow the due process. So, keep an eye of activities of bank and don't leave anything unattended. Sue the builder for paying EMI and also for return of money or possession of your property.
Dear Sir,
My answers are as follows.
Ans: Consumer forum will take 6-18 months to dispose. You may take steps to dispose.
Ans: Your account will be treated as NPA and even it may initiate steps to recover the amount. It cannot block all your bank accounts.
Ans: It can approach Debt Recovery Tribunal or issue notice under The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (also known as the SARFAESI Act) is an Indian law. It allows banks and other financial institution to auction residential or commercial properties(of Defaulter) to recover loans.
1. See the proceeding before RERA can be completed in few months.
2. See in case the flat is mortgaged and given as security then the HDFC cannot block your accounts though it shall not give NOC to sell the flat.
3. Only mortgaged property it cannot seize any property without court order.
4. See bank has given loan the construction is different part then the loan that is liability of builder and you can take steps against him, if in case you have authorised to bank to recover amount from other account then bank can ajust same.
If the builder has stopped construction then you may issue a legal notice or lodge a criminal complaint agaisnt him with the local police for the offences of breach of trust and cheating.
You can even submit a complaint to the RERA about this.
You cannot stop paying the loan repayment.
You can even try to sell the proeprty to any prospective buyer.
If you want to handle the matter through a lawyer you can very well go ahead.
The bank will pounce on you for recovery of the loan amount.
In that event they may even try to seize the property.
You may discuss with your lawyer about all possible action plan in this regard so that you get proper relief and remedy for this crisis.
1. The bank has not started the recovery process yet, hence it cannot be predicted that how long it will take to get the case disposed.
2. 2. For recovery of loan amount they may try all sorts of legal action.
3.Yes, under sarfesi act.