raja (engineer) 21 May 2015

Icici home loan default due to wakf problem

1.My brother got a loan from icici to build house in a gifted land(500sqyards) from my dad. That land link documents We got them from 1956 from original seller.

2.We built 75% of the new house from the 16 lakhs taken from icici bank in 2005 of ( total sanctioned amount of 25 lakhs from icici bank.)

3.One day we got notice that further construction should be halted (from sub register office)as that land belongs to wakf board long back (aurangajeeb donated that land to mosque when he stayed there for hault while moving for a war), later farmers sold that land to subsequent owners before 1956)

4.We immediately intimated this situation to icici bank and requested them to wait until this dispute is settled. Instead they choose smartly to start emi for 16 lakhs with out our consent.

5.We completely shattered as we already spent about 30 lakhs all together(loan +14 lakhs) from our pockets in 2005.

6.We asked icici to be feasible regarding this situation but didn’t agree, so we gave up the property and didn’t bother to there emi’s.

7.They sent notice for foreclosure, we agreed for it and its auction. But nobody bought that property as everybody know its got litigation from wakfs board.

My query is that how much we are responsible to this home loan default and how icici bank is not. What are my rights, as icici bank reported to cibil that we are defaulters(even when we agreed to icici bank to auction the property). They even sent foreclosure advertisement as a mail to us.

Now due to this we couldn’t buy home even now because of bad cibil report(score:644 and default status: blank, amount od:17lakhs, till date due:27lakhs).

Is there any way to fight back for getting our cibil rating unaffected and settle the issue in neutral terms of court (and what are our prospects and rights to do so). Or its just for us to suffer our bad fate.

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5 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 21 May 2015

Banks normally trace the title 13 years and obtain latest Encumbrance Certificate (EC) before sanctioning Housing Loan. In your case also a Legal Report must have been taken and EC obtained. Only when there is clear title, loans are given.However, despite the efforts of the Banks to safeguard their loan, Borrower cannot blame the bank if a dispute on the land arises subsequently.

Surprisingly in your case name of Aurangzeb is invoked to grab the land. When you have the link document and the land has been under your posession (your father and later yourself) you should have gone to Court against the people who are trying to claim the property with some strange story. Instead, you have chosen to discard the property, which is not correct.

Bank's are not responsible for the disputes on the property on which they give loan, even when such property is taken as prime security. You are liable to pay the loan taken from the Bank and until then the CIBIL rating shall not be changed.

Having taken the loan from the Bank, it is the basic responsibility of the borrower to repay the loan. You cannot blame the bank for some unreasonable dispute you got into, which you chose not to fight but simply left out the property. By discarding the property alongwith the structure you have built with the loan from Bank shall not absolve you from the responsibility of repaying the loan to the Bank.

Kumar Doab (FIN) 21 May 2015

Approach a senior lawyer dealing in revenue/civil/property matters with all docs on record and understand the merits and remedies to proceed further.

Biswanath Roy (Advocate) 22 May 2015

Consult with a Senior Counsel of your High Court. According to various notifications of RBI after sanctioning and payment of Home loan if any question arises regarding the title of the secured assets the borrower shall be liable to face it and on such ground he cannot defy payment of EMI in time.

T. Kalaiselvan, Advocate (Advocate) 24 May 2015

If the property was purchased genuinely by your father after verifying the title deeds properly then you should have contested the decision of the Registrar in a court of law and simultaneously the bank should have been informed about this dispute and should have a taken a direction from court to bank about the ongoing dispute hence the loan status t remain as status quo during the period of dispute until the case is disposed. Though the court will not interfere in the loan issues, this would have conveyed the bank some message to deal with the matter accordingly.

Now since the matter of loan is pending the cibil ratings cannot be improved until the loan amount due to bak is cleared, talk with the bankers and look for some possible solution.

raja (engineer) 01 June 2015

Thank you for your valuable replies sirs. I found out lately the reason why the icici emi's aren't paid. This is short summary as follows from the old emails exchanged between us and Icici bank. which I didnt mention last time.

. After several consultations with the bank they asked us to send wakf dispute notices through courier to its hyderbad icici bank. And we requested through a written letter to stop pre emi’s (as construction stopped unconditionally) and requested icici bank to start emi’s for the used amount of 16 lakhs for payment( all this happened in the year 2007)

We waited for there response, Instead they choose smartly and started emi for 16 lakhs from 2009 dec and asked us to pay pemi until 2009 dec. At this point for past 24 months they never sent a statement or contacted us. Our only dispute with Icici bank is that they are asking us to pay pemi which solely icici banks miscommunication and we were no way responsible(even after written letter request was submitted in 2007 to fix emis not pemi).

Later we explained this to icici through emails , when ever they emailed us for pemi and emi payments. They didn’t bother to respond to us regarding our queries, so we gave up the property due to wakf problem and didn’t bother to there emi’s.