Bank loan on disputed property

Querist : Anonymous (Querist) 20 June 2011 This query is : Resolved
I have taken a home loan from a bank and one of my relative is the guarantor for that loan. Now we came to know that the land on which our building is built is disputed. There is one person who has filed a case against the builder claiming that the land belonged to him and was transferred illegally to our developer.
1) What happens to the bank loan if our developer looses the case and we are asked to evict the land? 2) What happens to the guarantor?

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PALNITKAR V.V. (Expert) 20 June 2011
You have already taken the loan. You will have to repay it even if your builder loses the case and you are required to vacate. The guarantors' liability also continues.

A V Vishal (Expert) 20 June 2011
However, you can invoke the indemnity clause agaisnt the builder/deveoper.

bhagwat patil (Expert) 21 June 2011
As far as theory is concern you ought to vacate, but it will take decades together for execution of eviction better way you continue to pay EMI. help builder to prolong the matter as you and your guarantor cannot discharge yourselves from liability of loan.you can claim all amount from the builder but that is also time consuming process to get the amount in your pocket.

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