Trapped By Middleman and Builder in Banglore and Stuck with a huge Home Loan

[Shreepad]

Hi everyone,


I’m reaching out to this community in the hope of getting some practical advice or guidance on a serious financial fraud I’ve unfortunately become a victim of.


A while back, a middleman agency approached me with an offer to partner in a real estate deal with a builder based in Bangalore. They assured me that a flat would be purchased in my name, and a home loan would be taken care of by them. Their proposal included promises that:

• They would pay the EMIs monthly (through my account).
• All legal documents (sale deed, ownership papers, etc.) would be handed over shortly after the loan was sanctioned.

The loan was taken from a bank in my name, and for a while, they kept their EMI promise. However, I never received any official documents proving my ownership of the property. Eventually, both the agency and the builder disappeared — no response to calls, emails, or visits. I now have a large unpaid loan in my name, and it’s severely damaging my credit score (CIBIL).


I never received any benefit from this property, nor do I have any control or legal hold over it.


I need guidance on:

1. Is there any way to surrender or dispute the loan on grounds of fraud?
2. Can I take legal action against the parties involved? If yes, what kind of lawyer should I approach?
3. Are there any known cases or examples where such frauds have been resolved?
4. How can I prevent further damage to my credit history while this gets sorted?

If anyone has faced something similar or can refer me to the right authority (banking ombudsman, legal aid, etc.), I would be immensely grateful.


Thanks in advance for your time and suggestions.

 

[TaxWiser]

Hi everyone,


I’m reaching out to this community in the hope of getting some practical advice or guidance on a serious financial fraud I’ve unfortunately become a victim of.


A while back, a middleman agency approached me with an offer to partner in a real estate deal with a builder based in Bangalore. They assured me that a flat would be purchased in my name, and a home loan would be taken care of by them. Their proposal included promises that:

• They would pay the EMIs monthly (through my account).
• All legal documents (sale deed, ownership papers, etc.) would be handed over shortly after the loan was sanctioned.

The loan was taken from a bank in my name, and for a while, they kept their EMI promise. However, I never received any official documents proving my ownership of the property. Eventually, both the agency and the builder disappeared — no response to calls, emails, or visits. I now have a large unpaid loan in my name, and it’s severely damaging my credit score (CIBIL).


I never received any benefit from this property, nor do I have any control or legal hold over it.


I need guidance on:

1. Is there any way to surrender or dispute the loan on grounds of fraud?
2. Can I take legal action against the parties involved? If yes, what kind of lawyer should I approach?
3. Are there any known cases or examples where such frauds have been resolved?
4. How can I prevent further damage to my credit history while this gets sorted?

If anyone has faced something similar or can refer me to the right authority (banking ombudsman, legal aid, etc.), I would be immensely grateful.


Thanks in advance for your time and suggestions.

I'm really sorry to hear about your situation. Real estate and loan frauds like this are unfortunately not uncommon, but there are steps you can take to protect yourself and seek justice. Here’s a comprehensive action plan tailored to your case:

1. Immediate Steps: Reporting and Documentation

■ Gather All Evidence​

• Collect all communication (emails, WhatsApp chats, SMS, call logs) with the agency and builder.​

• Secure any documents you received (loan sanction letters, bank statements showing EMI payments, any agreements, etc.).​

​

■ File a Police Complaint (FIR)​

• Visit your local police station and file an FIR for cheating, criminal breach of trust, and fraud (IPC Sections 420, 406, etc.).​

• Clearly mention you were induced to take a loan under false pretenses, did not receive the property or documents, and the parties are now untraceable.​

​

■ Report to the Cyber Crime Cell​

• If any part of the transaction was digital, file a complaint at the [National Cyber Crime Reporting Portal]​

2. Bank and Loan-Related Actions

■ Notify Your Bank Immediately​

• Write a formal letter to your bank’s branch manager, fraud department, and grievance cell.​

• Explain the situation and attach a copy of your FIR.​

• Request a freeze or investigation into the loan account, and ask for a moratorium on reporting further defaults to CIBIL while the fraud is under investigation.​

​

■ Approach the Banking Ombudsman​

• If the bank is unresponsive, file a complaint with the [RBI Banking Ombudsman]​

• Provide all supporting documents and the FIR copy.​

3. Legal Action

■ Engage a Qualified Lawyer​

• Look for a lawyer specializing in property law and financial fraud.​

• You may also consult with a criminal lawyer for the police case.​

• If you need affordable help, approach your local District Legal Services Authority (DLSA) for free or subsidized legal aid.​

​

■ Civil Suit​

• Your lawyer can help you file a civil suit for recovery of damages and to declare the loan as null and void due to fraud.​

4. Credit Score Protection

■ Dispute with Credit Bureaus​

• File a dispute with CIBIL and other credit bureaus, attaching your FIR and complaint letters.​

• Request them to mark the loan account as “under dispute due to fraud.”​

​

■ Continue Minimum Payments (If Possible)​

• If you can, try to pay the minimum EMIs to prevent further credit damage, but only if it’s financially feasible.​

5. Other Authorities and Resources

• Real Estate Regulatory Authority (RERA): File a complaint if the project is registered under RERA [Karnataka RERA]
• Consumer Court: You can also file a complaint for deficiency of service and unfair trade practices.
• National Consumer Helpline: 1800-11-4000 or [consumerhelpline.gov.in]

■ Preventing Further Damage

• Do not sign any more documents or make payments to unknown parties.
• Inform your bank to block any further disbursements or transactions related to the loan.
• Monitor your credit report regularly for any new suspicious activity.

○ Summary Checklist​

1. File an FIR and cybercrime complaint.​

2. Notify your bank and request a loan account freeze/investigation.​

3. Approach the Banking Ombudsman if needed.​

4. Engage a property/criminal lawyer.​

5. Dispute the loan with CIBIL and other bureaus.​

6. File complaints with RERA/Consumer Court if applicable.​

Stay strong—many people have recovered from such situations with the right legal action and persistence.

(Source: LLA yt & Conversation with Gemini AI)

 

[Shreepad]

Thank you so much for your detailed and helpful information. I appreciate it.