conversion of equitable mortagage to legal mortagsgr

There must be a communication gap.  If all original title deeds are available with EC and if the memorandum is already registered, another mortgage may not be necessary in general.  But, where documents are not perfect (Lack of original link documents, the scope for claimants etc) depending on the necessity, bank as per the advice of sanctioning authority or Audit authority must follow their directions.  While accepting security, banks follow legal opinion given by their counsel and follow them.  Finally, the borrower has to follow the terms and conditions of a lender.

If the documents are perfect with such a legal opinion of registration of memorandum, the borrower can write to the lender for exemption and make efforts to impress lender that the present precautions are enough.

Meet Bank's advocate in person if your efforts in convincing the bank through grievance in their on line fail to yield any result.  It can be mentioned in the deed itself that it was already offered through EM and as per revised terms this legal mortgage is being done.  He can guide and explain to you the necessity.

In EM memorandum, generally no one mentions the Advance amount and it can be used for additional borrowing if the security is several times more than the borrowed amount.  In the case of LM, they specifically mention the advanced amounts.

My presumption is that  there may be some missing original or link documents deposited by you. In fact you have a right to seek the same information under RTI from your Banker the following query but I will never advise you for that as many authorities consider RTI is a threat or questioning their authority.

Information sought:  Sanction No...............................for Rs...............................Branch:...........................Name of the borrower.

Information solicited:

1. Please provide the reasons for a legal mortgage, when there was already an equitable mortgage through the deposit of original documents. as per legal opinion.