Tenant Takes ₹25 Lakh Loan Using Rented Address, Disappears with Family — Landlord’s Family Left in Limbo as Reddit Post Goes Viral

In a troubling case that underscores the importance of due diligence in rental agreements, a landlord’s family has been left in a state of shock after their long-time tenant vanished with a ₹25 lakh bank loan—allegedly secured using the rented property’s address.

The matter recently surfaced on Reddit, where a user narrated their parents’ ordeal in a post titled “Tenant ran away after taking 25L loan from banks. What should be done?” The story quickly gained attention, sparking legal advice and empathy from fellow users.

Trusted Tenant Turns Fugitive

The user’s parents had rented out a small shop to a man operating a woodworking business. For four years, he maintained timely rent payments, earning the family’s trust. However, last year, he requested property registration documents to apply for a bank loan. The family refused initially and advised him to find another location.

Despite the refusal, the tenant persuaded the elderly father to sign a 3-year lease—breaking from the usual 11-month agreement—on the strength of their longstanding relationship.

Last month, the tenant abruptly shut down the shop and disappeared with his wife and children. Within days, representatives from State Bank of India (SBI) and Bank of India (BOI) showed up at the property. They informed the family that the tenant had taken loans totaling ₹25 lakh using the rented address and had since gone missing.

Legal Limbo and Next Steps

While the banks clarified that the landlord is not liable for the loans, they requested to be notified immediately if the tenant resurfaces. The family is now exploring legal options to reclaim possession of the shop and revoke the rental agreement.

In the Reddit thread, the original poster added:

“We want to revoke his rental agreement and vacate his workshop. What is the legal way to move forward? I live in a different state and plan to visit next month to take further action.”

Online Community Responds

The post received a wave of responses from Reddit’s LegalAdviceIndia forum. Commenters advised:

• Issuing a formal eviction notice to the tenant’s last known address
• Changing the locks and securing the premises
• Cataloging any belongings left behind
• Filing a police complaint and civil suit for damages and unpaid dues

Several users also highlighted the importance of not making such property documents accessible to tenants without legal oversight.

This incident serves as a cautionary tale for landlords, particularly elderly ones, to remain vigilant about documentation, lease durations, and the use of their property by tenants.