Query about emi

Chhavinder Singh (Querist) 16 June 2012 This query is : Resolved
Dear,I booked a flat in Mar'2011 in ARIHANT ARDEN,Noida Extension,Noida & builder has done agreement to handover this flat to me by Mar'2013..Now as the Allahabad Court decision,no work has been started by my developer but I had already paid approx. Rs 8.0 Lacs to the builder by taking loan from HDFC bank..Now I am paying EMI of Rs 7000/- Per month to HDFC bank since last year,So,kindly advice me Can I take any legal support to stop paying EMI to HDFC bank till the court decision could come....Kindly suggest please.....Regards,
Chhavinder Singh (Ph. No. - 7869916066)

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Guest (Expert) 16 June 2012
Dear Chhavinder,

Do you find any fault on the part of your bank, which paid you/ your builder Rs. 8.0 Lacs on your own application by parting with public funds in the bank's custody?

If you do not want to pay EMI, you can do so at your own sole risk and responsibility of being treated as defaulter, getting your creditworthiness to be negative, making you ineligble for any further loan from any other bank or financial institution even in future due to your credit rating being reported online, which every bank/ financial institution checks before sanctioning any loan to applicants, and worse of that, the interest accummulating to such a huge extent for the period of default that even your family members would repent on your decision to stop paying of EMI.

Ashish Khandelwal (Expert) 16 June 2012
I agree with Mr. Dhingra.

One more thing, wheter you took final disbursment or not? becouse until the bank not disburse final instalment of your loan you have to pay only intrest on disbursed amount (Called Pre Emi) and not a single rupee will reduse from your principal outstanding.
so please check and if it is not fully disbursed than contact to bank to start repayment.

SAINATH DEVALLA (Expert) 16 June 2012
Dear Chhavinder,
The fault lies with your builder but not the bank which has advanced a housing loan.If you stop paying EMI's you become a defaulter.Hope you are not the only victim in your apartment complex,there would be many more.Hence form into an association and initiate legal action against the builder.That's the only solution.

ajay sethi (Expert) 16 June 2012
agree with experts . you have no case against the bnak . you cannot stop paying EMI . if you do interest will keep on accumulating .

whether builder is willing to refund money paid by you ? you cna point out tht as per allhabad high court judgement no construction has started . ask for refund of money paid .

mahendrakumar (Expert) 17 June 2012
usually such payments are released by the bank as per the agreement.

what does your purchase agreement with the builder states regarding releasing of installments?

generally,installments are paid to the builder on completion of certain part of the construction,say,10% on completetion of 1st floor,10% on completion of 2nd floor and so on. on completion of the specified word the builder issues a demand notice to the buyer and intern the buyer pass on the same to the bank.

so a case of anomaly in the process could be raised based on the loan agreement you had with the banker.i.e if the bank had released any installment against the terms of its agreement with you,you have a case.