Ananthi (Self) 16 June 2010

deed on mortgaged property

Respected Sir,

My father bought one acre land.

He asks loan from bank by mortgaging his land.

The bank told that the loan amount is too high(Rs 20 Ls) , so we can not give that much because the value of the land is low.

He made a sale deed by making the land in square feet and sold 436 square feet to my mother.

He made the deed in square feet, so the land value is increased.

Now the bank given a loan what my father asked (Rs 20 Ls).

is the way of getting loan in this way is legal ?

SRIKANTH MYLAVARAPU (SENIOR OFFICER (LEGAL)) 17 June 2010

madam,

Generally if the property is in acers the value will be less

if it is convertd in to squft the value of the propety will be increased

its all justifyble

but while converting the acere in to sq.ft. for the variation amount ur father has to pay an tax to the authorities

if u want to avoid the tax ur father has to buy another property with in one year with that benifitd amt.

it is is an capital tax

with regards

Srikanth

Ananthi (Self) 21 June 2010

Respected Sir,

Thanks for your valuable reply.

To obtain the loan , my father given a sale deed on 1 cent to my mother.

My father shows the 0.99 acres to the Bank and got the loan.

He could not able to pay the due and the bank took possession of the land.

He approached the bank for one time settlement and the bank told him that , pay

Rs 3 Ls, we will consider your one time settlement proposol , after my fahter paid,

the bank rejected the one time settlement and said that you inflated your land value and got loan,

so it violates the bank rules, so we rejected your one time settlement.