Ashok Shivhare (Self) 02 May 2014

Please suggest supreme court decesion

Dear All,

If possible please let me know the Supreme court decision name by which it has instructed Banks to disclose in the Pamphlets / Brochures etc., the name(s) of the bank(s) to which the property is mortgaged before selling it further to end user.

Persuant to this decision RBI has issued circular no. DBOD.No. Dir (Hsg). BC.31/ 08.12.001/2009-10

This is quite crucial and urgent for me as i have purchased a flat in project against which Builder has already taken loan from SBI , and same was not disclosed to me at the time of purchase of flat hence i am looking for relevant decision.

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2 Replies

G.L.N. Prasad (Retired employee.) 03 May 2014

Have you checked the sale agreement executed by Bank, wherein they have stated that there are no mortgages, encumberences, litigation on property.

Have they not provided you EC up to date of executing sale agreement ?

First issue notice to concerned Bank and seek copy of such agreement with the seller. Generally Bank obtain agreements signed by three parties (Bank, bulder, &owner)

Please also seek a copy of Registration directions/memoranda give by society/bank/builder while registering property.

Genrally Bank has to accept the responsibility, and you need not worry as the Bank is at fault.