Kisan credit card loans
swagat
(Querist) 30 January 2014
This query is : Resolved
Dear all,
I am presently working in Punjab as Branch head with a PSU bank. whenever i have to get a registered mortgage done for KCC loan, the tehsildar here asks for a certificate behind the registry from bank that they have verified the documents. however we have no power to give any such undertaking since such undertaking is given by the advocate in his legal search report.
and it is also not a legal requirement.
Please guide me what should i do to escape it as tehsildar will not accept documents without certifying. it is problem for every banker here since it creates his personal obligation to the loan.
ajay sethi
(Expert) 30 January 2014
under no circumstances give any such certificate . you can at most say that bank has advanced loan on basis of title clearance certificate issued by legal department
Rajendra K Goyal
(Expert) 30 January 2014
Bank takes the title clearance report / non encumbrance certificate from its Lawyer.
Manager can give certificate as under:
Title is clear, certificate is based on the title clearance report received from the Bank's lawyer."
All the Bankers should write about this to District collector including discussing it at monthly District level Banker's meet called by DRDA or otherwise.
Bank Manager should raise this issue through their controller in the State Level Banker's Meeting. Controller may separately write to State Government on this issue.
In case no decision is taken by State Government, Bank may decide not to fix personal liability on the issue, request the Bank to issue clear guidelines on the subject.
swagat
(Querist) 31 January 2014
thank you so much for the reply. So if we reply as bank has advanced loan on the basis of report of the advocate, will that be not creating any obligation on the part of the bank employee? since in case of any problem argument might be put up as a conninvance between lawyer and person giving the certificate
Rajendra K Goyal
(Expert) 31 January 2014
Apart from the certificate you must bring facts in the knowledge to your controller. Also take up the matter with the high level management through your association. Your such efforts would save you from future harassment by the Bank.
ajay sethi
(Expert) 31 January 2014
it is duty of your advocate to do due diligence . he has to satisfy himself that title is clear and marketable . if bank officer sanctions loan on basis of title certificate issued by advocate he cannot be blamed . it would not amount to connivance between advocate and banker
