Sold house to pay loan can I get my house and money back

772 votes

Dear Sir,
As regards your query, we have not received crucial information regarding certain facts, viz;
1. Place of your residence.
2. Whether your friend holds any money lending license?
3. Whether there is any written agreement between you and the lender?
4. Whether you have sold your house to the same lender or a third person?
Nevertheless, presuming that you are a resident of the state of Maharashtra, we express our opinion as under;
1. In the state of Maharashtra, any person who lends money on interest (beyond a certain amount on a negotiable instrument) must possess a valid money lending licence obtained from the Competent Authority. Lending of money on interest without a valid licence is absolutely illegal and is punishable under law.

2. If your friend has lent you money on interest without any valid licence and is harassing you for repayment, you can file a criminal complaint against your friend/s under relevant provisions of law.

3. You have further mentioned that you were forced to sell your house to repay the principal and the interest amount. However, we are not aware whether you have sold the house to the money lender or to a third party. In such circumstances –

a) If you were forced to sell the house to your money lender friend himself, you can file a criminal complaint against your lender friend under relevant provisions of law and also file a civil suit for cancellation of the sell transaction. In addition to this, you can also file an application before the Registrar seeking recovery of possession.

b) If you have sold the property to a third party unconnected with the lender on your own for making the repayment of the principal and interest amount, then you may not probably be entitled to avoid the sale. However, you can still initiate criminal proceedings against the money lender friend under the relevant provisions of law.

c) As regards recovery of excess amount, on the facts and circumstances, we may file a suit in the court of law for avoiding the contract and recovery.
Our above opinion is solely based on the limited information made available to us. We will be able to provide a more elaborate legal opinion once made conversant with the entire facts of the matter.

Regards,
Adv. Unmesh G. Dindore

Advocate Unmesh Gopal Dindore LawRato