Regarding construction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2016 My sister ( Married) has taken loan from bank and she has spent that amount to built new house where his husband live with family. Basically the land was in the name of My sister FAther IN LAw ( Sasur JI) . SO how to deal in this situation.

Eg: let say 500000/- ka loan liya bank se aur cash nikal ke jo ghar ban rha hai usme laga diya...

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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20 February 2016 From your query certain further queries arise. Was the bank loan your sister took for the purpose of house construction. In that case she would at least be a joint owner of the house irrespective of in whose name the land is.

If on the other hand the loan was for for some other purpose, the bank will seek end use certificate if it not simply an overdraft or loan against some assets.

It is also not clear when you state your brother-in-law and his family stay in that house - has your sister been excluded or denied the right to stay in that house?

Normally, if the house is not in your sister's name, she should get an affidavit sworn in front of a First Class Magistrate that she had taken a bank loan of x amount out of which she has on her husband's / f-i-l's instructions spent y amount towards the cost of construction and the same be treated as loan advanced to so and so towards cost of building. Such an affidavit should be placed in the custody of a trusted person, to be used later if needed.

However, if all is fine in your sister's relationship, she can show the bank loan as utilized to give advance to whoever owns the house, who would definitely be a relative and also some interest can be charged on such loan to be set off against the interest paid to bank.