Legal Question in Banking Law in India

I took a loan from a micro finance company "Mas Finance" , 18months back , of around 30k. I signed on the agreement where emi and rates where not mentioned at that time and was being told rate was 18Flat per annum,for 9months which turned out to be 36 later for 15 months. I got to know this after my two emi's got paid , and i immediately requested them for foreclosure of loan , for which they said could be done after 6 months with 6% foreclosing charges. When told their officials that i have been cheated on interest rates and tenure , they put the blame on me . Even after repeated applications for foreclosure on ground of being miscommunicated they refused , for which i stopped paying from 4th emi till date. Thrice i recieved some notification letter in gujrathi, which i couldnt understand as i am an keralite living in pune maharashtra. No one visited my resi in so many months to take the bouncing amount. Now i have recieved a legal notice from their lawyer stating to pay whole amount with interest in 15days. what should i do


Asked on 11/03/11, 11:25 pm

1 Answer from Attorneys
Rajiv Chandhok Ph: +919810050896 https://www.linkedin.com/in/rajiv-chandok-0827b733/

At once you should pay the entire amount pertaining to the bounced cheques within 15 days otherwise the criminal law will set in motion and you would be liable for prosecution u/s138 of the Negotiable Instruments Act 1881 punishable with imprisonment upto 2 years. Thereafter you should lodge a complaint for cheating, fraud in the local police station or with the MRTP commission.

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Answered on 11/04/11, 1:00 am


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