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Stopping home loan EMI in case of non possession


28-Dec-2025 (In Recovery Law)
Hi Im looking for legal advice to stop my outgoing home loan emi, as builder has stopped work on projecf for 3 years and rera date is passed , no possession in sight. Based on this https://m.facebook.com/watch/?v=3570235306452939&vanity=v Thanks Vishal
Answers (3)

Answer #1
630 votes
Unfortunately, a bank is not legally bound to stop home loan EMIs merely because the builder has delayed or stopped construction, as the loan agreement is independent of the builder–buyer agreement. However, you have strong remedies against the builder. You may file a complaint before RERA for delay beyond the promised possession date and seek refund with interest or possession with compensation. Simultaneously, you may approach the Consumer Forum for deficiency in service. You can also request the bank for temporary relief such as EMI restructuring or moratorium, citing project delay, though this is discretionary.
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Advocate Saylee Chaudhari

Adv. Saylee Chaudhari

LawRato Dombivli | 50+ Answers
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Answer #2
758 votes
You cannot unilaterally stop EMI as loan is independent of builder default. However, you may seek interim relief by filing complaint before RERA/Consumer Court seeking direction to builder to service EMI or refund. Also request bank for restructuring/moratorium citing project delay.
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Advocate Pankaj Bajaj

Adv. Pankaj Bajaj

LawRatoMumbai | 1000+ Answers
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Answer #3
843 votes
you can file for compensation and damages along with possession under real estate regulatory authority, but if you stop the EMI, you would lose the write on the property right on the property after receiving the possession. as bank may start an auction or recovery proceedings against you.
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Advocate Moksh Jain

Adv. Moksh Jain

LawRatoMumbai | 100+ Answers
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