EMI started 3 months prior to the date mentioned in Repayment schedule

POSTED BY kapoor.sahil4u@gmail.com ON December 13, 2014 11:38 am NO COMMENTS

I bought a property in BDI Sunshine city Bhiwadi (Rajasthan) which was under subvention scheme for 18 months (In this scheme the builder has to pay first 18 installments of EMI (interest only) and from 19th installment, buyer has to pay which includes the Principal)

I had to avail loan services from Indiabulls (as Indiabulls and builder had an agreement to provide the scheme)

The property was allotted to me in April 2013. The issue date of allotment letter was 2nd June 2013. The entire formalities were done and loan was approved and dispersed to the builder on 30th July.

The below mentioned documents were signed between the parties.

1. Builder buyer agreement between the builder and the buyer were no start or end date of the subvention period was mentioned.

2. Tripartite Agreement which was signed by the builder, buyer and Indiabulls on 8th July 2013. There is no start date and end date mentioned for the subvention period. It just states that “Builder assumes the liability of payments under the loan agreement as payable by the borrower to Indiabulls till 18 months (the period be referred to as the “Liability Period” and the Liability be referred to as “Assume Liability”)”.

After the loan was dispersed on 30th July 2013, I received Welcome letter from Indiabulls dated 05th Aug 2013 which stated that my first installment date of 10th March 2015 (covering 18 months of subvention from 10th Aug 2013 to 10th Feb 2015) with total installments as 258(240 months of loan term and 18 months of subvention) and end date of loan tenure as 10h Feb 2035

With the welcome letter I received a Repayment schedule which explicitly mentioned 18 EMI’s (Interest only effective 10th Sept 2013 to 10th Feb 2015) and from 19th EMI (10th March 2015) the principal and interest being charged.

The above is the background story for the buildup. Below is the issue

On 26th Nov 2014 I received a mail from Indiabulls stating that the subvention period is over and my first EMI was to start from 10th Dec 2014.

After confirming with everyone from Indiabulls call center to Indiabulls Branch and then with the Builder I came to know that Builder and Indiabulls had an agreement to provide subvention period to the property for 18 months effective April 2013 which has ended in Oct 2014 and hence I was charged the first EMI on 10th Dec 2014.

I was not communicated by any one (Indiabulls or Builder) about the update in the timelines and nor did I received any updated repayment schedule from Indiabulls stating the new EMI repayment chart that starts from 10th Dec 2014 rather than 10th March 2015.

Builder and Indiabulls are playing to and fro on the issue with both stating that the issue is with the other.

With Builder saying that it was the duty of Indiabulls to let you know repayment schedule where the subvention ends on 10th Oct 2014 than 10th Feb 2015.

Whereas Indiabulls is saying that even though the welcome letter states the repayment date as 10th March 2015 they have only charged 15 months EMI from the builder and hence the 16 had to come from the buyer and hence the automated system deducted the EMI from you for December and henceforth.

My concerns are

1. Why the customer was never informed or kept in loop about the deal that the builder and Indiabulls had?

2. There is no document that talks about the start date so how come the end date be so ridge.

3. Is Indiabulls allowed to deduct money from my account without informing the customer as according to the documents my emi repayment has happened 3 months in advance?

I would request your guidance on this matter and let me know who is at fault is it the Builder or India bulls. What steps can I take so that the above situation is favorable for me


Sahil Kapoor

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