Guidance needed for Loan Settlement – criminal case by bank ?

[Wisewolf8687]

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Wisewolf8687
PARTICIPANT
January 18, 2025 at 6:44 am

My friend took a loan from TATA Capital three years ago. Unfortunately, he lost his job last year, and his father also lost his source of income, which made him unable to pay the EMIs. Since I was listed as a reference, I’ve been receiving calls regarding this issue.

Currently, he is negotiating with TATA Capital to settle the loan for a reduced amount. They’ve agreed to settle it for ₹2 lakhs, even though the original loan amount was ₹7 lakhs.

However, today he received a notice from the police, which includes the following details:

Address:
No. 32, Block-B, 20th Floor, Bahumali Building, Lal Darwaja, Ahmedabad – 380001
Criminal Case: Xxxxxxx

WHEREAS your attendance is necessary to answer to the charge under The Payment and Settlement Systems Act, 2007, Sec. 25, you are hereby directed to appear in person (or by a pleader) before the Additional Chief Judicial Magistrate of N.I.A. Court No. 32 on 21/01/2025.
Failing to appear may result in further legal action.

I’m confused about why this has become a criminal case. What can he do now? He is not in a position to repay the full amount.

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[Alphaguy415]

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Alphaguy415
PARTICIPANT
January 18, 2025 at 6:57 am

Interested in knowing…

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[Ashishmaster940]

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Ashishmaster940
PARTICIPANT
January 18, 2025 at 8:29 am

Lawyer here.

Tata Capital has filed a case against him for failure to payback the loan. Appear in court, tell the court that he is in process to settle the amount. Once settled, don’t forget to bring settlment agreement in court with a plea of no further dues.

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[User_e921849e]

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User_e921849e
PARTICIPANT
March 22, 2025 at 8:08 am

Whom to contact for loan settlement in Tata Capital, my freind also has loan of 7L, but now is suffering from Chronic Illness and hence wants to settle loan

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[Wisewolf8687]

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Wisewolf8687
OP
March 22, 2025 at 1:27 pm

Stop paying EMIs and then the collection guy will contact. Ask him to arrange settlement since unable to pay

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