Query regarding unregistered mortagage loan
Pamaraju Bala Murali Krishna
(Querist) 22 March 2015
This query is : Resolved
Dear Sir,
I bought a site in Dilsuknagar, hyderabad in 2012 and started constructing house.
After registration, we noticed land owner put wrong plot nos in the registration document which we did not noticed initially. Later, we got it rectified in Sub registrar office.
Also, Landowner not handed over link documents during registration and replied saying documents lost for a lawyer notice.
After 3 years of struggle, construction work almost completed with remaining 10%. A week ago, Indian overseas bank manager visited our site and told us that land owner has taken 40 Lakhs loan on this property in 2011 and which is unregistered mortgage loan.
This situation made me think it as suspicious due to following reasons; could you please to clear my doubts and advice me the next action to be taken
1) Is bank allowed to give 40 lakhs unregistered loan for a property worth of 30 Lakhs?
2) Is bank can give loan without registering it in sub registrar office?
3) Why bank not taken action against the loan defaulter for 4 years?
4) Is bank allowed to take action against the new owner?
5) Can we continue with our construction work as bank manager told this verbally and without any written notice?
Thanks in advance,
Murali
Isaac Gabriel
(Expert) 22 March 2015
1.Yes
2.Yes.
3.It depends on the term of the loan
4.Yes.
5.Yes.
Your lamd lord has fraudulently sold the land suppressing the fact of th eloan,which could be sorted out with him.
Pamaraju Bala Murali Krishna
(Querist) 22 March 2015
Thank you for quick reply. Some of the prerequisites for a buyer to verify the genuinity of the land and seller are 1) EC from registrar office 2) public advertisement about willingness to purchase land 3) lawyer clearance certificate after reviewing the original documents etc.. we followed all these and purchased after found to be satisfactory.
Even these things will still leave loop holes for fradulent seller to register land for multiple clients?
Is there any act or action we can take against the seller to repay the loan amount? in my view, it is banks responsibility to take action on barrower for not paying not debts and not harassing the common man.
please suggest next step.
Isaac Gabriel
(Expert) 23 March 2015
The original sale deed(Parent document) could have been surrendered at the bank (ie Depositing of the tiltle deeds) as collateral security for the loan.This will not apear in the EC unless revealed by the bank.If the seller had had handed over the parent deed at the time of your purchase,then there is some error apparent for obtaining the loan.Verify the sale deed,and proceed.
malipeddi jaggarao
(Expert) 23 March 2015
For your specific questions, answers are:
1. Yes - Under Equitable mortgage of the property by depositing the title deeds. In your case, the seller did not give you the title deed (proving that he is the owner). That means this title deed is deposited with the bank for obtaining loan under equitable mortgage, which is legally perfect.
2. Yes. Equitable mortgage need not be registered with the sub-registrar. Only two conditions to be fulfilled. i) The mortgagor should deliver the title deeds to the mortgagee (Bank) 2. Such delivery should be with an intention to secure a loan as a borrower or as a guarantor. These two conditions are fulfilled. Hence it is valid morgage though not in the records of sub-Registrar.
3. The seller (borrower) might be repaying the instalments for some time. It is for the bank to initiate action basing on the period of default. If Bank for any reason could not take action in time, it is not a useful point for the purhaser.
4. No - It cannot take action against the purchaser personally, but it will take possession of the property including any structures that came up on the ground.
5. You should stop construction immediately until the matters are settled.
Since you are from Hyderabad, go into my profile press the contact button to contact me. I am a retired bank Officer and will be of some use to you.
malipeddi jaggarao
(Expert) 23 March 2015
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Rajendra K Goyal
(Expert) 23 March 2015
Well advised by the expert malipeddi jaggarao, agree to it.
Pamaraju Bala Murali Krishna
(Querist) 23 March 2015
Thank you Jaggarao gaaru, I'm resident of Singapore and all these transactions are carried out by my father in law in hyderabad. It costed 60Lakhs for land and 70 Lakhs for construction.
I took 30 lakhs loan for construction from HDFC bank.
If documents were submitted to bank for loan, I'm not sure how he shown original documents to advocate while clearing the sale deed. Looks like he had some contacts in bank who gave him the documents for temporary period.
I wi ask my father in law to approach you for advice.
Thank you very much
Pamaraju Bala Murali Krishna
(Querist) 23 March 2015
Thank you Jaggarao gaaru, I'm resident of Singapore and all these transactions are carried out by my father in law in hyderabad. It costed 60Lakhs for land and 70 Lakhs for construction.
I took 30 lakhs loan for construction from HDFC bank.
If documents were submitted to bank for loan, I'm not sure how he shown original documents to advocate while clearing the sale deed. Looks like he had some contacts in bank who gave him the documents for temporary period.
I wi ask my father in law to approach you for advice.
Thank you very much
ajay sethi
(Expert) 23 March 2015
well advised by Mr malipeddi
T. Kalaiselvan, Advocate 
(Expert) 25 March 2015
