Equitable mortgage of agricuture land and sarfaesi
santosh
(Querist) 07 February 2015
This query is : Resolved
A person has purchased an agriculture land having area 50 kattah vide a single deed.
Now he has mutated and converted 40 kattah of land (part) and approached for loan to create an assets on converted land.
As such, in a single deed having agriculture land and converted land also. Party want to mortgage only 40 kattah land (converted)
whether we can create equitable mortgage by deposit of aforesaid title deed ? and enforce sarfaesi on that
P. Venu
(Expert) 08 February 2015
What is the problem? Your question reveals no real problem.
Dr J C Vashista
(Expert) 08 February 2015
Vague query.
50 Kattah purchased in one sale deed and mutated 0 kattah, is not understood, why so??
What is the query and what do you want to know?
Rajendra K Goyal
(Expert) 08 February 2015
Equitable mortgage by deposit of title deed would result in mortgage of full portion covered under title papers. For mortgaging small portion of it move for registered mortgage.
Pradeep MK
(Expert) 08 February 2015
ONE CAN CREATE SECURITY BY WAY OF DEPOSIT OF TITLE DEEDS FOR THE LOAN TAKEN FROM BANK OR FINANCIAL INSTITUTION.
IN YOUR CASE THERE IS ONLY ONE DOCUMENT OF TITLE FOR TWO TYPES OF LAND I.E AGRICULTURAL LAND (10) AND NON AGRICULTURAL LAND (40). THE BANK CAN CREATE EQUITABLE MORTGAGE BY KEEPING THE ORIGINAL SALE DEED FOR 5O KATTAH LAND. THE SAME WILL BE VALID FOR 40 KATTAH OF ANON AGRICULTURAL LAND.
IN SOME STATE MORTGAGE OF AGRICULTURAL LAND IS NOT PERMISSIBLE. PL CHECK THE LAND LAWS OF THE STATE IN WHICH LAND IS SITUATED
T. Kalaiselvan, Advocate
(Expert) 09 February 2015
Whether the property after sub-division has been properly mutated?, if mutated then whether the title deed has been sub-divided through registrar's office?, if yes, then the bank can proceed with the grant of loan amount mortgaging the mutated and subdivided property or else the entire property will be taken for consideration.
RAJU O.F.,
(Expert) 09 February 2015
Except in some states, any immovable property can be taken for mortgage towards security to bank loans. Agricultural property is exempted from proceedings under SARFAESI Act. But there are some judgments deciding that such agricultural properties must be used for agricultural operations, for considering exemption under the said Act.
K.K.Ganguly
(Expert) 14 February 2015
Yes, you can create security interest on 40 kottahs of converted non-agricultural land out of total 50 kottahs of land mentioned in a single deed.
