Legal precautions while buying auction property from bank

Sorry don't rely on bank , They are just after getting their money back, They don't hesitate to put individual in trouble , means bad loan etc. they want to move to some one else.

Take help of good advocate who are specalized in property law. And go to bank ask them for all documents check it take opinion of advocate and then post what is eccumbrance on property.

Bank to recover money i came across many cases they sold disputed property to some third party and third party are regretting because they invested money and not getting property and bank have raised hands. 

So my charter accountant language never trust bank , they and group in the bank can do any thing 

When you purchase property under SARFAESI Act from the bank, be also prepared for purchasing litigation. Unless the mortgagors consent for the sales, there is always scope for litigation for several months or years in DRT courts and civil courts. When you are in trouble the seller bank may not come for your help. Taking into consideration of all the aspects, you may take a proper decision.

Hi Mr. Raju, Mortgagors have already provided consent for Sales. It is that party to which the encumbrance for partial share of the property was sold by the mortgagors that I am concerned about. Since that party is clearly a third-party, what are the chances of future legal trouble. Please advise.

Encumbrance of share of a portion of the property would be a real headache inviting litigation from that third party. If his emcumbrance could be cleared either by you, bank or the mortgagors and if you get the property with 'nil-encumbrance', you may get peace. 

Mr. Raju O.F has explained.

Is this third party aware/made aware of the E-auction?

Third party & the mortgagors are engaged in a Civil Suit. Mortgagors have claimed that they did not received the sales proceeds from the encumbrance in stipulated time and hence the registration is void. However, the case is pending in civil court. Meanwhile, Bank could not wait any longer as the liability became NPA and SARFESI procedure got initiated. Third party is aware of the e-auction. Please advise.

Let the court decide.

Stay away from purchase till then.

Proceed further only if you are ready to face any type of eventualities. Any how Bank will not come for your help. Because of all these defects you may get the property cheap, keeping good margin for litigation. Take wise decision thinking pros and cons.

Is it that the boundaries of partial share are clearly demarked and placed on record?

The bank can not now sell on throwaway price and has to sell on market price.

Please refer case no. CC/14/2062 dated 08/12/14 in Bangalore District Consumer Redressal Forum (Urban) - vide similar such auction, Mr. H G Das Prakash ended up paying price of Rs. 2,80,000/- to M/s Diwan Housing Finance Ltd. He neither got access to related documents, nor even square inch of the real estate.