dipali (labour consultant) 04 September 2019

unregistered mortagage

housing loan granted against equitable mortagage.in Gujarat state registration of mortagage is mandatory under Registration Act 1908.amendment 2008.the mortagage transaction/feed was not got registered through

oversight. thereafter the house was taken possession under Sarfasai act and auctioned with issuance of sale certificate. whether attachment of property is legally teneble when the bank failed to get mortagage deed registered whille granting loan.

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8 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 05 September 2019

Equitable Mortgage Transaction (EMT for short) is a valid under the law and Banks are perfectly in their action in taking it over under SARFAESI Act.

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SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 05 September 2019

Equitable Mortgage Transaction (EMT for short) put through in favour of the Bank is a valid under the law and Bank's is perfectly in taking it over under SARFAESI Act is perfectly in order.

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dipali (labour consultant) 05 September 2019

Thanks for opinion. But my query is different. In the state of Gujrat, the registration of mortagage with the registrar is complulsory. In the instant case, the bank skipped to get the mortagage registered. Non registration of mortagage will render the transaction not engorceable in law. so under this circumstances, can bank take possession of nonregistered property. can bank before taking possession, manage to regist the mortagage with the registrar as per.. amendment
of 2008 in gujrat state. can it attract penalty. This is because I feel non registration will amount to evade the stamp duty

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 05 September 2019

Banks are permitted to have EMT and that is valid only for banks. Mortgage to other than Banks needs registration. The facility of EMT was given to Banks by a Central Act which cannot be negated by a State act.

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P. Venu (Advocate) 05 September 2019

"In the state of Gujrat, the registration of mortagage with the registrar is complulsory". Is it under SARFAESI Act or Registration Act?

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G.L.N. Prasad (Retired employee.) 05 September 2019

The issues of non-payment of fees is different, and this can be condoned by making such an application and paying penalty. Simply because memorandum was not registered, it is not proper to treat the contract illegal or void.

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DISHA D. SHAH (lawyer) 07 September 2019

see this link

https://www.lawweb.in/2016/08/whether-unregistered-mortgage-deed-is.html

deed must be registered

Originally posted by : dipali
	housing loan granted against equitable mortagage.in Gujarat state registration of mortagage is mandatory under Registration Act 1908.amendment 2008.the mortagage transaction/feed was not got registered through oversight. thereafter the house was taken possession under Sarfasai act and auctioned with issuance of sale certificate. whether attachment of property is legally teneble when the bank failed to get mortagage deed registered whille granting loan.