• Business loan not repaid

My Father got loan for his Business (Printing Press) from Central Bank of India for 6.5 lacs in 2001 & cleared that loan by paying 13.75 Lacs in 2005. and in 2005 got another Business loan of Amount 9.3 Lacs which then converted into Term loan for 14 Lacs in 2005-06. that loan could not repaid due to Business loss.
For that Loan - my Mother Land (Present sale Value 10 Lacs : government rate : 5 Lacs), my LIC Policy is assigned. (present value : 1 Lacs) and my Uncle House & my fathers friend House also guranteed to that loan. these original documents are with Bank.
in Oct'13 : bank sent notice in News paper that to repay the Loan with Interest 29 Lacs (till Sep'13) or will do the auction for these land and take the bank loan amount.

Also, my father passed away in Nov'13. Bank verbally told that they ready to write off the Interest and asked to pay 14 lacs & My Uncle (3 lacs) & My fathers friend (5 Lacs) will ready to pay. in auction my mother land will go Min 6 Lacs in auction & my LIC of 1 Lacs : total 14 lacs can be rcvd. we have asked to give the order copy for this so that will do the arrangement for the amount. Bank di not give.
But now Bank asked verbally them (My Uncle & Fathers fried) to pay 23 Lacs within Jan'14 or will go for auction.
following are my questions.

1. How to move forward to write off the Loan amount with interest by only giving My Mother Land (govt value: 6 lacs) & my LIC Policy (1 Lacs). so that others will not get affected.

2. How to move forward to get the write off the Interest and to pay only loan amount of 14 Lacs.

3. I am working in Chennai - whether I am responsible to repay the loan. there is no property avail in fathers name & mothers property also sold.

4. Shall we put the suit to Central bank Branch to accept our negotiated amount?

5. For negotiations, how to get success?

Asked 4 years ago in Business Law from Madurai, Tamil Nadu
You can file a complaint in consumer court and seek damages. Simultaneously, register complaint against the Bank with RBI ombudsman for the Bank's illegal practice. 

However, please note that you need to all the paperwork to execute it in your favour.

After execution of the above, the Bank would come forward for negotiated settlement.

Feroz Shaikh
Advocate, Navi Mumbai
407 Answers
58 Consultations

4.4 on 5.0

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