I have taken a Housing loan from LIC for my house at Chitalapakkam in 2006 and the dues were paid in time. Now, after the recent rains at Chennai, the Govt. official came to our street, inspected and marked my house and 20 other houses , which according to them were water Bodies( small canal) and intimated that it will be demolised.
I purchased this in the year 2006 with the document showing as Nattam and the Govt. has alloted 3.5 cents to my previous owner and he constructed the house(He got it in 1985 or 1986). When I purchased, i got the total plan approved by the Local Muncipalaity and LIC has seen all the records and got their Legal opinion as well and after that they have sanctioned the loan. Now, the question is if the House is demolised, should I pay the loan and if i get the compensation from the Govt,. will it be adjusted and the balance to be paid by me. The property worth is 40 lakhs loan around 26 lakhs. Now I am totaly confused. your suggestion please