• How to get back money paid to bank through RTGS

Dear Sir,
My neighbour house came to auction from Shriram housing finance for not paying housing loan for more than 7 years. I know the house owner Mr. Srini and contacted him to buy the property. We both came to a settlement. The house owner (Srini) informed Shriram housing finance (SHF) about this and Srini asked us to pay SHF a sum of Rs. 5 lakh towards first installment of one time settlement (OTS) to stop the auction process of SHF. Srini also prepared a hand written letter stating that on behalf of him, my father-in-law will pay Rs. 5 lakh to SHF for OTS process. My father in law also signed that letter in person and submitted that letter to SHF. Then my father-in-law transferred Rs.5 L directly to Srini’s SHF loan account number through RTGS payment.
After payment of Rs. 5 L to SHF, next day my father in law prepared a legal document stating this first payment to SHF followed by how we are going to pay SHF in step by step process and asked Srini to come and sign the legal document. Next day before signing, Srini asked to pay him another Rs. 5 lakh as advance. We told him the we will pay money to him only on the day of registration. But Srini didn’t sign the agreement prepared by us. At this juncture we got a doubt in his words and decided to stop the process with him as well as sent an e-mail to SHF that we will stop the OTS process. Few days later a telephonic conference call was arranged between SHF, Srini and myself. Srinivasan informed the manager of SHF, that he is not willing to sell the property to me. So the manager asked to stop the OTS process and asked me to participate in bidding process. This the manager asked us before itself, but since Srini is known to me for years I informed that I don’t want to participate in the bidding. Later, I decided (under my wife name) to participate in bidding and by god’s grace I won the bidding also. Within a month we paid the total bidding amount (March 2021) to SHF through RTGS. Meanwhile, Srini filed a court case in DRT against SHF stating that SHF made auction of his property for less amount. The case went for almost a year and recently judgement came (Feb 2022) in favor of SHF. 
My father-in-law already sent a legal notice to Srini but there is no response from him. Srini does not have any source of income to pay back 5 L. My father-in-law also asked the manager of SHF to repay our Rs. 5 L that we paid initially to stop bidding process. But manager refused to repay Rs.5 L stating the reason that it is credited to Srini’s loan account number in SHF. 
Our question is (1) whether it is possible to get 5 L from SHF to my father in law account. 
Currently, the Sale deed is under process for registration. 
(2) whether before taking the sale deed from SHF , do we need to file any case against SHF through my father-in-law. Will that handwritten letter by Srini and further signed by my father in law in front of SHF staff people can stand as evidence to get back Rs. 5 L from SHF.
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

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12 Answers

The money you paid to the bank was because you were willing to buy the property through a OTS. Now the deal went sour and then you participated in the bidding process and won. Now the bank should return your money as you didn't pay the bank to settle his loan. You paid the bank so that the loan is paid so that you get the property. 

Therefore the bank should pay the money or else file a complaint against the bank in the consumer forum.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Dear Client,

It is almost impossible to reverse the funds once transferred via NEFT, RTGS or IMPS. If beneficiary account number to which you have transferred the funds is wrong; in that case, the funds will get reversed to your own account from which you have initiated the transaction.

Thank You

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

File a suit for specific performance. You will get it back

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Get sale  deed registered in your wife name 

 

2) then only issue legal notice to finance company to refund money paid under OTS scene 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Payment of file L cannot be denied by anyone but you have no case against shf. Money paid into loan account are not recoverable. You do have a case against srini if he is bankrupt it your misfortune. You can try to recover from sirini by issuing him a lawyer’s notice and filing a money suit after that.

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

1. Yes, SHF is under obligation to refund the amount and in case sale deed executed then adjust the amount 

2. Better take sale deed from SHF , then take legal action 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

1. You may send a legal notice to SHF demanding refund of the part amount paid under the OTS on behalf of Mr Srinivasan on or before a deadline, as you had revoked your OTS offer subsequently. If they fail to do so, file a suit at the proper court through a local lawyer.

2. Registration of the sale deed will not prejudice our right for refund of the part payment under the OTS which did not materialize.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

1. The money was paid by your FIL to Housing finance company on behalf of the borrower, therefore he may not be entitled to reclaim it from Sriram housing company.

He may have to sue the borrower for recovery of loan amount.

2. The hand written letter or the agreement is not enforceable in law, hence no case against the housing finance company is maintainable 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

File case in district court fir recovery of Rs 5 lakhs paid under OTS 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

He can file a suit for recovery in the civil court against the borrower.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Yes

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

- You can approach the district commercial judge court as well

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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