• Stopping EMI of home loan

Hi Team,

On this kaanoon portal, I asked a query around 1 month back. 
Details given as follows:


After that I submitted an RTI in Noida Authority to confirm if the Builder Unitech has paid their dues or not ? I got a revert that still Payment to Noida Authority is pending from builder & that's why they've issued a notice to builder for cancelling land allotment.

I am mentally prepared that whatever money paid in last 10 years is now lost !,....but don't want to waste further anymore in terms of EMI's to bank.

I want to stop Home loan EMIs & surrender this property to bank for recovery , 
Also I want to held Bank legally accountable as on what ground they've approved this property when its dues to Noida Authority wasn't even cleared ? We buyers buy property on a trust that its a bank approved property - so it'll be secure, but here i lost my money completely.

My question is can i file a case against Bank for issuing loan without proper verification ? 
Rest i've already filed a case against builder & its running from last 5 years in NCDRC.

The reason for filing a case against bank is because when i stop paying EMI, they'll start pressurising me for recovery. But in this case they're equally responsible for this situation - why only i should bear all the loss ?
Asked 8 months ago in Property Law
Religion: Hindu

2 answers received in 10 minutes.

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11 Answers

You can file complaint against bank before consumer forum for deficiency in service sanctioning loan without carrying on due diligence and seek compensation for mental torture undergone by you 

Ajay Sethi
Advocate, Mumbai
76877 Answers
4615 Consultations

5.0 on 5.0

Yes , you can file case against bank and ask your all EMI paid by you back along with interest and collect the same amount from builder and the flat or land does not belongs to yours and you are no more in the picture.


You can file case against bank in RBI ombudsman.

Ganesh Kadam
Advocate, Pune
10669 Answers
94 Consultations

4.9 on 5.0

a case can be filed against the bank in the consumer forum for deficiency/negligence in services and seek compensation for mental torture, financial loss caused to you 

Suneel Moudgil
Advocate, Haryana
2161 Answers
3 Consultations

4.7 on 5.0

- It is duty of bank to check the the validation and valuation of properties from a legal and technical aspect of the property , before sanctioning the loan. 

- If not check ,  then the bank is responsible for the same . 

- Hence, you should file a complaint against bank , before consumer forum for deficiency in service

- Further, you can also lodge your complaint with RBI ombudsman.

Mohammed Shahzad
Advocate, Delhi
4086 Answers
43 Consultations

5.0 on 5.0

Yes you can file a case before national commission and seek interim stay for payment of emi till the SC decided the unitech matter and provides compensation to all. 

Prashant Nayak
Advocate, Mumbai
20514 Answers
38 Consultations

4.4 on 5.0

If you have not got the position of the flat till now then there is a point that you can surrender the property to the Builder and ask for the refund of the entire amount paid along with the interest in this case where you are looking a case against Bank the bank has completed the due diligence as the land has been allotted to the Builder for the development purpose and the use of the land to be claimed by Noida Authority from the builder time to time before transferring the land to the Builder through registration deed.

Stopping of housing loan EMI is going to Dent your credit report which will definitely create problem in your future financing and at the same time bank will move to the court for recovery of the amount outstanding however the property will also be attached and sold out by the bank and any unrealized amount of the loan outstanding will again be claimed from you so the good advice will be to file a case in real estate regulatory authority against the Builder to get the refund of entire amount paid along with the interest in case you have not got the position of the property so that the amount you have borrowed from the bank can be paid back to the bank and the rest of the balance amount you can enjoy speak to me for the further information on rera its complaint and appeal in Tribunal in case it is required

Vimlesh Prasad Mishra
Advocate, Lucknow
6627 Answers
23 Consultations

4.9 on 5.0

Bank never approved property, neither such approval has any value. Bank only check if loan can be recovered from such property if default in EMIs.

Approach NCLT for insolvency against builder and consumer court for refund with interest. Stopping EMI will declare you defaulter.

Or let the bank proceed against property, you just press consumer case. Court will grant recovery with compensation and  interest.

5 years long time, press for early disposal. 

Yogendra Singh Rajawat
Advocate, Jaipur
20064 Answers
28 Consultations

4.5 on 5.0

you can seek your remedy through the district consumer disputes redressal forum. . 

Mohammed Mujeeb
Advocate, Hyderabad
17256 Answers
11 Consultations

4.5 on 5.0

1. Yes you can file case against bank and its officials for providing loan without proper verification of property and it documents. 

2. You can make an application for temporary injunction in that suit for stopping the EMI payment till suit is decided 

Mohit Kapoor
Advocate, Rohtak
9250 Answers
3 Consultations

5.0 on 5.0

Perhaps you may not have any case maintainable against the bank especially on the lines of what you may propose to file a suit against them.

The bank will give a clear reply that the loan has been sanctioned based on the collateral security as well as after ascertaining the replying capacity of the borrower, hence it has nothing to do with the fraudulent intention of the builder.

If you want to stop repayment of loan then you can do it but the bank may initiate recovery action against you as per law and the collateral security you offered.




T Kalaiselvan
Advocate, Vellore
66880 Answers
883 Consultations

5.0 on 5.0

  1. As per the information mentioned in the present query, makes it clear that you have already initiated the NCDRC case and the same would give your money back though would take time little more.
  2. Yes, you should move an application first to the bank for stating your reason to stop the payment in future as it is because of their fault that you have lost you money.
  3. And in fact, you can also file a suit before the court of civil law  for compensation for lost caused due to their fault.

Sanjay Baniwal
Advocate, South Delhi
5331 Answers
13 Consultations

5.0 on 5.0

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