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Manish Tewary (Sr. S/w Eng)     21 June 2012

Stopping emi against home loan for property in noida extensi

This matter is regarding Noida Extension.
Since the matter is sub judice in Honorable High Court of Allahabad and Honorable Supreme Court of India and there was a stay on nay construction activity as per court verdict till approval of NCR planning board, can i stop paying my EMI to bank for a property in Noida Extension.
The court had observed that it was fault from the state govt in acquiring the land under wrong clause and later they converted it to residential area. So if this is the case and court had directed to stop all construction activity till NCR planning board approves the new master plan then why should a customer suffers for a mistake done by the state govt. Also, it was duty of the bank to verify all the documents from the builder, that means they also failed in the duty.
So is it possible to stop the EMI on these grounds. I am paying my EMI's regularly from last 1 and half year without any construction at the site.

Manish Tewary
Mb. 9818280510


 6 Replies

Surendra Gupta (Banker)     22 June 2012

As per the latest information available,  the NCR planning Board is likely to approve the master plan and the construction is likely to resume shortly. The stopping of EMI at this stage is not prudent and can land you as a defaulter in CIBIL. The transanction is entered into by you with the builder and the banker is lender only. How cAN you shift the blame to the banker for the entire mess of the Govt.

1 Like

Manish Tewary (Sr. S/w Eng)     22 June 2012

Hi Surendra Ji,
Thanks for your suggestion, I know that in this case bank is lender only but also why the end user should suffer bcoz of mess created by govt. I am only saying that EMI should be stopped till everything gets clear.

Also, as per my interaction with few peoples in the same matter it will take another 1 year or 2 to get green node for construction as matter is in Supreme court and also farmers doesn't want the NCR planning board to approve the plan till Supreme court gives it decision.

Request you to kindly guide me as I am a middle class man with lots of responsibility of family. Paying Rs. 10,000 as EMI without any construction is a pain which i cannot afford any more, I am already paying this from more than a year but can't afford any more.

If possible, kindly provide me your contact number or email so that i can contact you further if required on this matter.


Manish Tewary

Surendra Gupta (Banker)     23 June 2012

You can keep in touch with the following.I am available at Website

Prasun Chandra Das (Banker)     23 June 2012

Dear Manish,


Many middle class men all over the country are in your position. Even builders who have clear title delay projects, intentionally or otherwise, and borrowers have to bear the burden of paying EMI. There is a saying in economics: "sunk costs should not affect future economic decisions". Think over it - it will guide you properly.


I agree with Surendra Gupta. But I also admit that I cannot fully feel the troubles you are going through. My sympathies and good wishes are with you, but I would urge you to fight it out. Try controlling costs, try another better paying job, try shifting your loan to another bank with lower interest rates.. talk with people who you trust and you will find a way out.


All the best.  

S Jadhav 98336 98330 (Jadhav & Associates)     16 July 2012


Tell all your friends not to buy property under construction. Even the government and RBI have been trying to dissuade buyers from buying under construction properties because the builders will try to dupe you.

The banks are supposed to disburse the loan only on proof of further construction work and on the basis of percentage of completion. The bank should not discburse further loan.

The problem is not created by government policies but by greedy builders and more greedy government officals at the top and the politicians as per the news articles in news papers.

Pls tell the bank that instead of EMI you will pay the interest on the loan amount disbursed and do not default as you may be blacklisted.

Please do not pay builders before the construction is complete. As it is, in the big cities the construction costs are a small part while the land costs are high. Also the profit margins are very high and the builders dont tell you all the details.

S Jadhav

Uday (Lawyer)     17 July 2012

Dear Manish,

I pity your situation. But you are left with two options now.

1) You can foreclose the loan.

2) To continue paying the EMIs until the problem is sorted out.

I believe that since the construction work is not completed, you should be paying the Pre-EMI so far. If it is so, the entire payment made by you should have been appropirated towards the interest alone and not even a single paise could have been appropriated towards the principal amount. And in this situation, the problem does not get sorted out for a long time or the case is decided against the state, then you will be at loss. So, please send representation to the bank stating the exact position and request for some waiver and foreclose the loan account.

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