If you stop paying EMI bank will seek to auction the property
if there is any shortfall bank would sue you to recover the loan amount with interest
your credit score would be affected
Profile funding victim
Hello I'm a victim of profile funding scam.I was asked by an agent to take loan on a house and the builder will pay EMI. So in 2017 I signed up for 3 houses and I was told one of them will be cleared for loan. But later on I got to know all the loans have been accepted. All the builders have submitted receipts of cheque to the bank that I paid the down payment.Receipt submitted by one builder says that the cheque is cleared and receipt submitted by other builder says receipt 'valid after realisation'. These receipts were submitted in the bank as down pament to get me loan. The bulider payed emi for 1 year and now they stopped paying.Now I'm paying aprox 1 lakh emi every month for all 3 property which I doubt I will ever get. The loan amount for 3 different properties are 50lakh, 40lakh and 25 lakhs. Two of the builders are already underground and their property won't be ever completed for sure. I had hope from one house that maybe I can get it for which I had taken 50lakhs loan. The current value of that property is 50lakhs and my loan amount itself is 50lakh and the builder is asking me to pay 30 lakhs extra for possession since the cheque receipt they submitted in the bank were never encashed and I'm liable to pay the due amount as per builder . Even if pay that amount I doubt I will get the property and if I keep paying load for this specific house I end up paying 1.5cr for this house in 30 years and total 3cr for all 3 properties. All my salary goes in paying EMI for something which I doubt I will ever get.My life today is nothing diffrent from a slave my life and career is at stake. *So I wanted to know what if I stop paying my emi? *I already changed my signature at the bank so that the blank cheque can't be deposit by the bank and I'll be saved from criminal charges. *Can I be sentenced for prison? If yes then for how long? And aprox how much time it takes for court to take such a decision ? *What's the worst thing that can happen? * Is there any other way? I have no more money to pay EMI or pay lawyer. Thanks
Asked 3 years ago in Property Law
Religion: Hindu
10 Answers
This is clear case of fraud and criminal offence of cheating by builder. It is quite possible that the builder has sold the flat to second person. The only solution is intimate the lender your inability to pay let the lender sale the properties and recover their outstanding. You will have to forgo whatever you have refunded to the lender. Changing of signature will not absolve from criminal proceeding for cheque bounce. But if the larger picture is brought to the notice of Court you will come out the cheque bounce case. Builder might have kept the cheque to blackmail you.
Hi, If you want you can stop paying EMI. Bank will recover from the property mortgaged to the Bank. But your CIBIL Score will be damage and you will not get any loan in future. Further, before stop paying EMI. You can't keep amount in your SB Account or any other Account in which Bank you have taken the loan.
I was asked by an agent to take loan on a house and the builder will pay EMI
AND YOU BELIEVED????
AND THEN YOU CALL YOURSELF A VICTIM?
I BELIEVE YOU ARE AN EDUCATED PERSON
1. The builder must have taken advance PDCs from you.
2. if he deposits those cheques for encashment and they are returned unpaid, then you become liable under s.138 of the Negotiable Instruments Act
3. changing your signature with the bank would not help. In fact it may go against you.
4. you have to file a RERA complaint against this builder, provided the builders have even registered their projects with RERA
5. you can also file a source information report with the RERA in case the projects, though compulsorily registrable, are not registered with RERA
If the builder has cheated i the name of loan or not developing the construction of the building or there is no possibility of completion of the building as foreseen by you, you may first give a complaint against the builder with RERA, while you cancel the agreement by communicating your decision to terminate the sale agreement to the builder sent by registered post/courier service.
You can stop paying the EMI amount to bank, and allow the bank to recover the loan amount by taking possession of the property which you have booked for recovery of loan amount.
The bank cannot initiate criminal action for the default in home loan repayment becasue this is civil in nature.
- The builder has made you scape goat , and till date you have not taken any legal action against those builders.
- If there is agreement with you with the builder , then you can lodge a police compliant against them for the offence of cheating and breach of trust etc.
- Further you can claim entire amount from the builders which you have paid him directly .
- Further, even if you will stop for the payment to the bank , then also bank cannot take any legal steps against you , and maximum they can take possession of the property which you have booked.
- Further , if you cancel the agreement due to fault of the builder then you can get the amount refund which you have paid with 10 percent interest.
- You can file a compliant before the RERA or consumer forum against the builder on the ground of deficiency of services for getting your flat or money refund and compensation for harassment .
- However before filing the compliant , you can send a legal notice to the builder and the bank .
You can contact me, if further suggestion needed.
Dear Sir
It is evident that the builder has taken full advantage of you.
If the builder refuses to pay the instalments or commits cheque fraud, you will be in huge trouble.
It is advisable that you file a RERA complaint against the builder.
Thank you
1. Stop paying the EMIs. The Bank will initiate SARFAESI proceeding, sell of the flat and realise the outstanding amount. The excess amount remained after selling the flat will be refunded to you.
2. Lodge a police complaint against the builder or defrauding/cheating you.
3. There is no criminal offence from your side for which you can not be taken in to custody.
4. Issue a letter to the Bank stopping payment of those cheques on the ground that the builder has received the payment made by you since he has issued the receipt confirming that he has received the payment which you have eventually made in cash after the Builder asked you to pay in cash in place of paying through cheque.
Wow, you want to run your mind now instead of running it earlier.
and now also you are running in wrong direction.
By changing signature in bank, you will be go deep in cheque bounce instead of getting saved by that.
Good thing you did is finally approaching for legal help.
You have already paid lot of money.
You have to recover it and not to get into more losses.
better to get the properties to be taken oven by bank so complete picture will come out for next steps.
No you will not be sentenced to prison but you need to defend your case effectively with the help of a good lawyer. Seek injunction from payment on merits of your case
