NPA home loan - filed OA in DRT Pune but wants to regularise it

784 votes

Don't deny the loan in DRT; instead show your bona fides. Tell the Tribunal that you repaid regularly until Covid, availed the RBI moratorium, faced genuine financial hardship, and have voluntarily deposited ₹3.5 lakh, which proves your intention to clear the dues. Demand a detailed statement of account from the bank and check it carefully. Under the Supreme Court's 2021 ruling in the Small Scale Industrial Manufacturers Association case, no interest-on-interest can be charged for the moratorium period, and under RBI's 2023 norms penal charges cannot be added as compounded interest. Any such excess should be challenged, since the ₹30 lakh demand on a ₹22.5 lakh loan may well be inflated. Alongside this, submit a written One Time Settlement or restructuring proposal with a realistic instalment plan, and ask the DRT to direct the bank to consider it and to stay coercive action (such as possession or auction) while you keep paying. A properly drafted reply supported by documents and a reasonable settlement offer usually gets far better results than just requesting a waiver, so it is advisable to have a lawyer review your loan papers and the bank's application before your next date.

Advocate Bhumika Vijay Bajaj LawRato

608 votes

First of all you will need to stop paying your EMI now if you want any settlement in this case and as your 3-4 years has already lapsed you will need to seek one time settlement in this kind of unsecured personal loans the settlement amount is usually 35-40 percent of the total principal amount pending, and take foreclosure letter from them, but in the start you will get a lot of recovery and harassment calls from them

Advocate Moksh Jain LawRato

658 votes

You may submit a written representation to the Bank requesting reconciliation of the account, correction of any wrongly levied charges, waiver or reduction of penal charges and consideration of loan restructuring or a One-Time Settlement (OTS), depending on your repayment capacity. If the Bank has initiated proceedings under the SARFAESI Act, you may challenge the relevant measures before the Debt Recovery Tribunal (DRT) under Section 17, provided the statutory requirements are satisfied. Place proof of your ₹3.5 lakh payment, the loan agreement, the account statement, and your correspondence seeking regularisation on record. The appropriate remedy depends on whether the Bank has issued a demand notice, taken possession of the property, initiated an auction, or filed recovery proceedings.

Advocate Mallika Gunde LawRato