Responsibility & time limit of physical possession

After the auction of the property, the DRT will issue a letter with certain terms and conditions.  The Bank and auction purchaser shall follow the terms and conditions of DRT.

File RTI application seeking information as follows:

Information solicited:

1.Please provide the laid down directives on specific time frame for handing over the property to the auction purchaser, 

2.Please provide all letters and correspondence that state the efforts made by Bank to give possession of property No................................auctioned for the borrower account................................., to..............................(Auction purchaser)

 

Issue a simple notice stating following facts and demand for immediate physical possession of the property, and market rent for the property since receipt of consideration.

To

.....................................

.....................................Bank

......................................

Notice for giving physical possession of the property, after payment of entire consideration.

1. The property no.......................situated at...................was auctioned on..................................in the recovery process.

2. The successful bidder.............................. has paid entire consideration of Rs....................on........................

3. Even after receiving the entire sale consideration, the bank is deliberately delaying physical possession and not responding to auction purchaser and lethargic in giving physical possession.

In view of the negligence and deficiency of service, the successful bidder hereby demands immediate physical possession, as he lost interest at market rate, and could not occupy the premises from................and lost rental income also.

Incase physical possession is not given within 15 days from the date of receiving the notice, the successful bidder has to approach proper forum complaining of harassment and demanding for compensation, costs, and other reliefs and remedies.

 

Sd/

.................................

Auction purchaser

.............................

Depending on the response you can initiate further action against the bank.

I purchased a property (land and building) through PSU bank auction and after emerging as a successful bidder, I already paid 25% of the bid amount. Prior verification of encumbrances couldn't be done by me as bank didn't provided the documents. Bank is not providing the documents even after paying 25% payment stating that documents are available in their other branch and asking me to directly collect the same. Bank has taken only symbolic possession and informed me that they got DM order for physical possession, but same is pending as police are not deploying their force. Now bank wants me to pay balance 75% immediately. My queries are, 1. How to know whether any other encumbrances are there on the property. 2. Is it possible that even after mortgaging with submission of original deeds with secured creditors, can borrowers sale that property or made another sale agreement with others?. If done so, is that legally valid? 3. How many days time extn. can be provided by the bank to me for payment of balance 75%. 3. Can legal heirs of the borrowers go to court against the aleday concluded auction sale. 4. Which one shall be done first - physical possession or registration of sale confirmation. 5. If I fail to pay bal 75%, will the bank forfeit entire 25% or only EMD I.e. 10%. I request all learned experts and other members of this forum to clarify above. Thanks in advance.

Please seek information under RTI for the legal opinion on record for the property, show that opinion and contact that local advocate with those tender offer and other documents in between you and the bank.  Physically check the property and inquire with present occupiers their rights if any.  You can get EC of the property from  Sub-Registrar.and mutation status from Municipality/Corporation. Please go through specific stipulations as to when you have to pay balance amount and what the agreement states on physical possession.    Once you purchase a property through auction by a Public sector undertaking, you remain to be an innocent buyer.  Your advocate may show the legal way in making payment with a condition that the entire purchase consideration will be kept in a separate deposit account in your name, and the bank can appropriate the amount only after they deliver physical possession.

Without studying entire documents, no expert can provide any opinion online, and you have to necessarily trust a sincere advocate locally and take his professional services if you want your investment to be safe.