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Praba Karan   19 February 2022

HOME LOAN

.Sir/Madam

I have taken a home loan of 41L from a financial institution against a home to be built in 2016. Initially I have given the builder half of the total amount - 26L and have been paying the EMI ever since then. But the builder have not planted a single brick in that place. And in 2018, he declared bankruptcy and issue was resolved through NCLT and given to another builder in 2019.

Now after another 2 years, still nothing happened in that area by new builder. And I am still paying the emi.

In this case, can I stop paying the emi and ask financial institution to take the property and auction and get the home loan closed?

Already I have paid nearly 15L in principal and interest. can I get this once auction process is over?

Will this impact my CIBIL Score? if so how can I recover my score


Learning

 2 Replies

Isaac Gabriel (Advocate)     19 February 2022

What were the conditions at the time of handing over the project to another builder and terms with the stake holders.Neverthless, you have to initiate legal action in the circumstances narrated.
1 Like

Praba Karan   21 February 2022

They were asking additional 700Rs/sq.ft for completion of project. And have said they will complete within 2yrs. Without even planting a brick they are marking it as 60% completed. And asking for additional release of fund. My problem, even with given amount they didn't do any work. I am afraid to give any additional unless they do something. What they are suggesting is either wait till as long as they will take or get only 50% of deposited amount by cancelling the flat.

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