willful defaulter - bank threatning


Hi Experts,

I have a home loan from SBI which is near 20 lakhs.

It was a joint home loan with my wife. We both are working. 2 years back my wife put false cases against me of domestic violence and 498a , which are running and I am confident of winning them soon. Since then we are living seperately.

After house possession she gave the house on rent and started collecting rent. I refused to pay half EMI as she is collecting rent and well educated. I was outside India, so in meantime she went bank and changed email id and mobile number in bank. After that she withdrew 6 lakhs from home loan account.

Now she has refused to pay EMI and i also refused to pay it.

Bank has sent me a notice that under sarfaesi act and also threatning me of publishing in paper as Willful defaulter. I told them cases are going on in court and i am in no position to pay the EMI as i am also giving maintenance to my kid after court order.

What all actions can bank take against me --- I do not want to become willful defaulter, I am ready to give in writing to bank that they can auction my house to recover their dues. House is worth more than 70 lakhs.


You must reply to the notice immediately without wasting time, as per the provisions of law. If you insist them not to declare or disclose your name as a defaulter and to just sale off the property, I am afraid if that would work. They might have already updated your records with CIBIL or any other credit information agencies after declaring your account as NPA. I would suggest not to give anything in writing before you purchase a copy of the SARFAESI Act, 2002 and read it.

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Thanks sujnyanendra,

Can bank only give my name as Willful defaulter or they will declare both me and my wife as willful defaulter as loan is on both names.

Wife has earlier deposited meagre amount to convince bank she is ready to pay her half of EMI but she has no money .

Bank is not concerned that Flat is on rent and rent is with wife..even after i produced rent agreement in name of my wife and tenants to Bank.


The bank has nothing to do with your personal disputes and that house is on rent.

You should immediately engage a lawyer well versed with banking matters/ SARFAESI Act and contest the matter.

You must arrange buyers that may announce that they are willing to buy and set off the loan or the bank shall auction it at available price ..............................although you may claim its market price Rs.70 lacs.

You have not handled the matter properly.

It Bank has taken the possession it can evict the tenant also.

You are about to loose the property.

Better save it and get some handsome amount.


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Hi Kumar,

Thanks for the response.

I am planning to reply to bank notice. Also can bank file any civil cases against me and my wife?

Once Bank declares me Willful defaulter will they proceed for auction or they will file civil cases against me?


The bank is most likely to follow the protocol set in Bank for such matters: recover the loan...........symbolic possession, auction etc.........


Your lawyer can counsel you further after examining all docs and inputs  on record.


Prefer a lawyer well versed with such matters.




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