Amulya (ABC) 03 March 2015

Auctioned property purchase

Hi,

I have chosen an auctioned property for purchase and went through the auction and was the successful bidder.
I have also paid 25% of the amount to the DRT team now and have to pay rest of the 75% amount within 15 days.
I have purchased the property through online auction conducted by DRT as per Recovery of Debts Due to to Banks and Financial Institutions Act, 1993.
Below are the details regarding the property
1. Land has been purchased by the borrower on Feb 2003
2. Construction of the house done by 2004.
3. Borrower has mortgaged the property to bank in Feb 2004 for an amount Rs.X
4. Again in 2005 borrower has taken some more amount Rs.Y from the same bank on the same property
5. Borrower has sold the property to third party as default sale of agreement and GPA in August 2011
6. Property went to DRT in the year 2008-2009.
7. Bank has sealed the property in the month of Jan 2012
8. First auction of the property held by bank on Feb 2012 through newspaper advertisement
9. Case has been filed by third party as the bank has made auction on the property and as they are claimants in 2012
10. Bank has shown the true copy of the sale deed and the corresponding property documents to DRT court which are there with them from 2004
11. Borrower has sold the property with the forged copies and duplicate stamps which were shown as detailed in the DRT court.
12. Hence everything are made clear to DRT that the documents are forged. However the case made by the third party was still pending.
13. Also the third party names are present in the encumbrance as claimants now.

By looking into all these, is it safe buying the property from DRT. We have to pay remaining 75% to them.
Will there be any chances for the third party winning the case?
Do we have any effect if the case is still pending?
Are there any chances if the third party or the borrower willing to pay all the amount to the bank and we have to lose the property in future?

Kindly help me out asap.

Note: The bank which is selling the auctioned property is ready to give us home loan as well for the property.

Thanks in Advance!

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3 Replies

R.K Nanda (Advocate) 03 March 2015

get title verification done of said land by local lawyer before buying it.

Thanks,

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kavksatyanarayana (subregistrar/supdt.(retired)) 03 March 2015

Before auction of the property, the DRT will take steps for non-interference of others on the property. and at the time of taking loan, the borrower will give undertaking that he will repay the loan amount in the stipulated time and otherwise the bank has power to do as they like. this is for information.