Mr. Gupta and Mr. Dhulkhedkar have given valuable advice. Kindly follow it.
It is felt that your transactions with the bank and the response of the bank are verbal.
To whom bank has issued acknowledgment of the collateral documents? If it is you {borrower} then bank may discharge itself by handover the documents to you. Bank may ask to indemnify it.
The borrower has repaid the loan hence the borrower, guarantor, should stand discharged, and NOC, CIBIL status, collateral etc should be returned to borrower at once.
If all legal heirs are willing to indemnify the bank there is no situation.
Did you utter to the BM in any of the meetings that your relations with your aunt are not good? If yes all antennas of all staff in the bank shall be up.
BM of the bank might have sought and obtained legal opinion in your case and might be stating as per legal opinion by the bank to him.
The banker{s} in your case seem to be assuming a situation {hypothetical} if some relative of borrower/legal heir of grandfather objects why the ownership document of the property were returned to borrower, and apparently bank has become adamant.
However bank should not hesitate to issue its contentions and guidelines in writing.
Banks avoid issuing written communication to avoid onus of situation falling on it.Bank may try to avoid writing to you till the time you are avoiding to write to the bank.
RBI has advocated policy on matters to the bank
23. Release of other assets of the deceased borrowers to their legal heirs
“
Banks had represented that the principle of not obtaining succession
certificates etc. could be extended for settlement of claims in respect of other
assets of deceased customers including securities held against advances
after adjustment thereof. Banks are advised not to insist upon legal
representation for release of other assets of deceased customers irrespective
of the amount involved.”
“Banks may, however, call for succession certificates from legal heirs of
deceased borrowers in cases where there are disputes and all legal heirs do
not join in indemnifying the bank or in certain other exceptional cases where
the bank has a reasonable doubt about the genuineness of the claimant/s
being the only legal heir/s of the borrower.”
Banks are under " Code of committement to Customers'. Hence bank should not hesitate to show and provide copy of the relevant rules and policies to customer, it is following in your case.
You may submit a written representation under proper acknowledgment to the BM {Be specific} and mention that you have represented to the bank on dated…….and dated…..bank has affirmed that NOC and collateral documents shall not be returned although as per verbal demands of Mr/Ms………..designation….dept……….address you have already complied and supplied the following……… {Mention details} and raise your demand to supply you the NOC, CIBIL report {affirm charges if any shall be paid by you by cheque}, and collateral documents, in next say…7 days by hand to you in bank. If the BM does not comply or respond you may escalate to Nodal officer/Chairman of the bank under proper acknowledgment. Let the bank reply in writing. Based on the reply of the bank you shall a ground and reason to proceed.
You may refrain from sharing the residential address of the any aunt/uncle etc, till response of the bank.
The customer should record such transactions {audio/visual} for use at appropriate time in appropriate forum, and keep evidence/witness.
