Forced into a loan by employer-politician, paid ₹45L total to save our house
I really need some honest advice because this situation has been mentally and financially draining for my family.
Back in 2011, my dad was working under a local politician (in his bank). During that time, my dad was pressured/threatened into taking a loan using our house papers.
We never used that money ourselves.
On top of that, my dad didn’t even receive proper salary from him for around 11 years.
Despite all this, we still tried to repay. Over time, we paid around ₹16L from our own pocket.
But the bank manager treated that ₹16L not as principal repayment, but adjusted it toward interest and kept adding more interest on top. It felt like endless “interest on interest.”
Eventually, my dad’s financial situation worsened and we couldn’t keep up.
Now recently, the bank took possession of our house and told us it’s now their “asset,” and the only way to get it back is to settle.
Total demanded: ₹29L
Already paid earlier: ₹7L
Now arranging: ₹22L (by breaking FDs saved for my and my sister’s marriage)
So overall:
₹16L (earlier payments)
₹29L (current settlement)
= ₹45L total
For a loan we never even used.
We are going ahead with the payment because we don’t want to lose our house. But this whole situation feels extremely unfair from being forced into the loan, to unpaid salary, to how the bank handled interest.
After we close this and get our documents back:
• Do we have any realistic legal options in India?
• Can we recover money (at least the ₹16L or excess interest)?
• Can anything be done about unpaid salary for 11 years?
• Is it even worth pursuing this legally or will it just drain more time/money?
Would really appreciate guidance from anyone with legal/banking experience or similar situations.
Right now it just feels like we’re paying for something that was never our fault.