Dear Lawyers,
We own two flats in an Apartment in Hyderabad. The Apartment Builder has borrowed money from Charminar Co Operative bank, Hyderabad by mortgaging full Apartment registration documents and ran away with money a few years ago. All flat owners could not trace builder and finally gave up. Few years ago Charminar Bank stopped its operations since Bank was failed to repay money to depositors. They have not contacted their borrowers to repay the loan amount.
One day Charminar Bank has send a notice to repay borrowed money toward one time settlement. My father has contacted each flat owner to collectively repay money toward one time settlement to release property documents. However, all flat owner doesn't agree for one time settlement since they didn’t want to pay the money for which builder has borrowed and cheated the people.
My father being more concerned of not losing his two flats, went to Charminar Bank to pay his share liable to bank towards one time settlement. Bank Manager has agreed to my Father request and issued a Banking official letter stating that “Mr XYZ has paid share of liability toward flat 1 and 2 as one time settlement. Bank wouldn't auction his apartments and return the registration document after carrying out auction to remaining flats". Later Bank has sent legal notice to remaining flat owners to repay the browed money otherwise, Bank will carry legal auction on properties. Remaining flat owners ignored legal notice and continued to stay in the flats.
Last month RBI cancelled Charminar Bank licenses. The registrar of Co operative bank has send a legal notice to Apartment including my father that Bank will carry out legal auction on properties since borrowers has defaulted loan amount. My father contacted registrar to inform his share amount paid toward one time settlement. But registrar told that 'My father will receive property documents only if full loan amount is paid otherwise, bank will auction all flats in apartments. My father is working hard to bring stay order.
Is it legal that if a bank manger issue an official letter stating that " Mr XYZ has been relieved from Loan liability share" Please help us since we are not aware of banking policies.
Thanks,
Raj
