Initially:

• At first, the builder pays the EMIs to maintain appearances.
• Later, builders deliberately stop paying two EMIs and pay a third to avoid NPA classification.

Now:

• Eventually, EMIs stop completely.
• As a result, borrowers start receiving recovery calls, legal notices, and visits from recovery agents at their homes and offices.
• In addition, recovery agents call or email seniors at the borrower’s workplace.
• Meanwhile, CIBIL scores collapse silently.
• At the same time, banks file ECS and cheque-bounce cases against the borrowers, and the CIBIL report reflects the same as “Suit Filed.”
• Furthermore, banks file cases before the Hon’ble Debt Recovery Tribunal to recover the loan amount with compound interest and penalty.
• If borrowers don’t contest these recovery cases, or if a borrower has changed address without updating records, the tribunal decides the case against the borrower. Consequently, the bank files an execution before the DRT, retrieves the borrower’s PAN details, and attaches the salary account. If the borrower still doesn’t pay, the court can ultimately arrest and imprison the borrower until the dues are cleared.
• In many cases, the builder defaults on such a large scale that insolvency proceedings against them begin before the Hon’ble National Company Law Tribunal.
• Overall, profile funding damages CIBIL scores so severely that victims can’t apply for home loans, vehicle loans, credit cards, business loans, or personal loans.
• Moreover, if an employer checks credit history — especially for roles in stock exchanges or finance — a damaged CIBIL score can cost victims the job.