I have a very strange case. My Father had taken a loan from a co-operative bank around 20 years ago. It was a business loan (CC & BD) and the loan were in my mothers name. As the business collapsed and didnt do well, my father left us and has never returned back. Now the bank loans were due and as the loans were in my mothers name the bank started approaching her for repayments. As there was no source of income she joined as a teacher in on school. The bank immediately attached her salary and started deductions of Rs. 700/- every month. Her income was Rs. 1600/-, two childrens to be educated and to be brought up but still the court gave judgement in favour of bank and initiated the deductions for 17 years. Last year my mother was detected for stomach cancer and she expired. But the above case is still not solved. As we were about to receive some dues from my mothers service of 17 years like PF, gratuity etc I had some cash in hand.
The Total amount after interest came to Rs. 15 lacs with interest for 19 years. The bank had approached us 3 years ago with one One time settlement scheme and had asked to pay some nominal amount. The amount finalised by bank under OTS was Rs. 2.89 lacs. We paid Rs. 30k at that moment and agreed to pay the remaining in some time but couldnt make it. Now my mother expired and I contacted the bank with the news. I was told to pay 4.5 lacs because the OTS does not hold true and has already lapsed. Then I contacted few people regarding the case, few said I am not liable and should forget it, others said I being the legal heir has to pay the dues. Thru one contact reached RBI but no response from them. The RBI team had contacted the bank and asked for explaination. The bank recovery head now says to pay only the OTS amount decided 3 years back and get clear dues cerfitcate immediately.
My only query is, Am I liable to the above said loan. If yes I will willingly pay it and get rid of it.
Please advice. Your help can give me a lot of peace for me and for my mother who struggled her entire life to repay this loan.
Thanks & Regards,