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Sahil (Sales)     23 December 2014

Emi started prior to the date mentioned in repaymentschedule


I bought a property in BDI Sunshine city Bhiwadi (Rajasthan) which was under subvention scheme for 18 months (In this scheme the builder has to pay first 18 installments of EMI (interest only) and from 19th installment, buyer has to pay which includes the Principal)

I had to avail loan services from Indiabulls (as Indiabulls and builder had an agreement to provide the scheme)

This property was allotted to me in April 2013. The issue date of allotment letter was 2nd June 2013.

Entire formalities were done and loan was approved and dispersed to the builder on 30th July.

The below mentioned documents were signed between the parties.

1.      Builder buyer agreement between the builder and the buyer were no start or end date of the subvention period was mentioned.

2.      Tripartite Agreement which was signed by the builder, buyer and Indiabulls on 8th July 2013. There is no start date and end date mentioned for the subvention period. It just states that “Builder assumes the liability of payments under the loan agreement as payable by the borrower to Indiabulls till 18 months (the period be referred to as the “Liability Period” and the Liability be referred to as “Assume Liability”)”.

After the loan was dispersed on 30th July 2013, I received Welcome letter from Indiabulls dated 05th Aug 2013 which stated that my first installment date of 10th March 2015 (covering 18 months of subvention from 10th Aug 2013 to 10th Feb 2015) with total installments as 258(240 months of loan term and 18 months of subvention) and end date of loan tenure as 10h Feb 2035

With the welcome letter I received a Repayment schedule which explicitly mentioned 18 EMI’s  (Interest only effective 10th Sept 2013 to 10th Feb 2015) and from 19th EMI (10th March 2015) the principal and interest being charged.

The above is the background story for the buildup. Below is the issue

On 26th Nov 2014 I received a mail from Indiabulls stating that the subvention period is over and my first EMI was to start from 10th Dec 2014.

After confirming with everyone from Indiabulls call center to Indiabulls Branch and then with the Builder I came to know that Builder and Indiabulls had an agreement to provide subvention period to the property for 18 months effective April 2013 which has ended in Oct 2014 and hence I was charged the first EMI on 10th Dec 2014.

I was not communicated by any one (Indiabulls or Builder) about the update in the timelines and nor did I received any updated repayment schedule from Indiabulls stating the new EMI repayment chart that starts from 10th Dec 2014 rather than 10th March 2015.

Builder and Indiabulls are playing to and fro on the issue with both stating that the issue is with the other.

With Builder saying that it was the duty of Indiabulls to let you know repayment schedule where the subvention ends on 10th Oct 2014 than 10th Feb 2015.

Whereas Indiabulls is saying that even though the welcome letter states the repayment date as 10th March 2015 they have only charged 15 months EMI from the builder and hence the 16 had to come from the buyer and hence the automated system deducted the EMI from you for December and henceforth.

  My concerns are

1.      Why the customer was never informed or kept in loop about the deal that the builder and Indiabulls had (I might not have agreed to buy that property on subversion less than 18 Months)?

2.      There is no document (builder buyer agreement or Tripartite agreement )that talks about the start date of the subversion period then how come the end date be so ridge.

3.      Is Indiabulls allowed to deduct money from my account without informing the customer as according to the documents my EMI repayment has happened 3 months in advance and I have been charged of Pre- EMI as well?

I would request your guidance on this matter and let me know who is at fault is it the Builder or India bulls. What steps can I take so that the above situation is favorable for me and if i am entitled of any relief.


 4 Replies

Hardeep (Business)     23 December 2014



1) Since Indiabull ( IB ) have committed to you a schedule and have not kept to it, the primary party against which your case could lie is Indiabulls.


2) You are not concerned with whatever agreements IB and the Builder entered into since you are not party to it and more so since you were never informed about it till after an EMI has been deducted before schedule.


3)Prima facie, a case lies against IB  in the Consumer Forum for lapses/ deficiency in service against agreement. You may proceed accordingly.


DISCLAIMER : General information and advice provided is without any warranties as to suitability for any use, correctness and application to any specific case. Please always take proper legal counsel . However, if it helped anyone even a little a " thanks" via the " Thank Contributor " button would be appreciated and would encourage me to keep on making efforts :-) . I am also always open to corrections and further learnings from more experienced Seniors here.For DIRECT contact with me / my friends and more law related informations / queries visit

1 Like

Sahil (Sales)     23 December 2014


Hi Hardeep,


Thanks for the prompt reply.


Offline I was discussing the case with the branch head of Indiabulls (IB) housing finance and he said that the interest part that was to be paid to IB by the builder for 18 months of subvention was already deducted at the time of loan dispersal and then handed over to the Builder.


e.g My loan amount was of 10 L. But the amount that was handed to over to Builder was 8.78 and the remaining 1.22 was deducted on account of subvention Interest that was supposed to be given by the Builder.


Now the issue is narrowed on the duration (i.e the no. of months covered under subvention) of interest part of 1.22 L.


According to IB, 1.22L covers only 15 Months and 1 day interest for the loan. Since the loan was dispersed late by 2 months and 29 days IB has not charged any interest to builder as per their agreement which talks about the end date of subvention period to be Oct 2014.


Since I was not aware about the agreement I was under the impression that whatever is written in the welcome letter that is fine. Welcome letter states “my first installment would be banked on 10/03/2015 on 10th  of every month and total installments as 258 (my loan is for 240 months and 18 months of subvention)” and the total interest part remains as 1.22L


Similarly Repayment schedule which came to me with the Welcome letter states that first 18 installments emi with interest only (which was to be paid by the builder) and from 19th (10/03/2015) emi the principal also gets deducted and which is the start date.


Now please guide if the issue is still open for case in Consumer Forum.


Can I also charge compensation or relief as well on the issue?






Sahil Kapoor

Hardeep (Business)     24 December 2014

Generally :

1) if a Service Provider -which includes Financial institutions - defaults or is deficient in Service, case lies in the Consumer Forum.


2) In such cases you can claim costs actually incurred as well as damages for harassement/ tension/ agony etc. The Court finally decides on the quantum.


3) You are not bound by agreements between two parties which you were not even aware of. Only what you have agreed to binds you. You have in writing when your EMI should have started, which is inline with the agreement you entered into.IB can not take EMIs before that from you.

What I broadly understand from you now is that your claim is 3 months early start of EMIs- if so, the interest cost of the same can be calculated and IB can / should pay you at least that accordingly. But if you have been severely troubled due this sudden and unexpected outgo a claim may lies as said above.

Sahil (Sales)     29 December 2014

Hi Hardeep, Please guide me as to how can I proceed with my case above so that I can get the issue resolved and gain any compensation as well for the agony and stress that they have caused me. I spent some time online to figure out how can I log my complaint against the financial institution and the steps I can take and hence saw two agencies 1. National consumer helpline (1800114000) 2. Consumer online resource and Empowerment centre (Core 1800114566) - This has an online portal where you can log your complaint Please guide if the above mentioned are the same or which of them is the correct organization for a speedy resolution of my case. Regards, Sahil Kapoor

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