Non performing asset because of non completion of project by third party
My father aged 72 bought loan in 2018 to do hi tech agri project. Loan was sanctioned based on the project submission from the company who is doing the project. The loan amount got credited to the company account in 3 phases. We do not know what was spent for what purpose as loan amount was directly credited to the company account. It's been 4 years but the company has not completed the project and it's nearing completion. Now, bank is asking us to repay all overdues till date. We are completely dependant on the money from the project to repay the loan. We have given security as one land. From bank, they are saying our account will go to NPA and safaesi act may follow if we do not pay the overdues. We do not have amount to pay the overdues. I want to get your opinion on this.. Though we are asking to extend the time to repay dues, what will happen if dues are not paid. What happens to the land given as security for this loan? What action bank may take? Since amount was directly sent to the company and they have not completed the project, shouldn't they bear the overdues? Thank you.