Registry of bank auction property

@binay: Sir, thank you for your response. As suggested, I have gone through the Transfer of property act, 1882. I think section 69 deals with my situation but it does not clearly state whether the registry have to executed in favor of the winning bidder only. Also another section 85 which also applies to my situation has the following notation attached to it

Dear Gupta,

As per the sale certificate given to you, it shows that you are the purchaser of the subject property since you have paid the money to the bank... Please go through the Appendix V of the Securitisation Rules... Hence Bank will get the property registered in your favour only... You can ask the Bank to get the property registered in favour of your relative by giving them an indemnity... Bank officials to avoid staff accountability issues in future will avoid to accede to your request and insist that since you are the bidder  and you paid the money the property will be delivered to you free of encumbrances and shall execute sale deed in your favour... You have quoted some instances of High Court auctions... If you are sure of this please speak to the Authorised Officer of the Bank through your local Advocate...But  I have my own apprehensions... Anyhow I congratulate  you for purchasing the property through Bank aution and wish you Good Luck 

Thank you for your guidance. I have spoken with the Authorized officer but he has so far not agreed to my request. He has directed me to approach the legal department at the head office of the bank to get their opinion. I feel its more a ploy to get me off his back rather than a possible solution. Still I plan to visit the concerned person very soon. Can you advise which would be the appropriate court to approach in this matter if I am not able to get a solution from the bank? Thanks once again for your guidance in the matter.

Just had a talk with the law department of the bank. They are basing their decisions based the judgement passed by the Madras HC in the case of Hemalatha Ranganathan vs. Authorized officer, Indian Bank on 13th Aug 2012. After reading the case gives meaning to the saying "Few bad apples spoils the bunch."

Dear Gupta,

Thank you for updating me... The saying  you said  is correct.... That is why I wrote in my earlier reply that  bank staff to avoid future staff accountability problems will not take decision in your favour though your request is reasonably genuine...

Mr.amit I just wonder how you  could expect the bank to execute sale deed in favour of the family member recommended by you. Because banks which sell properties never execute sale deed in favour of auction purchaser and one more point to be noted in this auction process is that with the issuance of sale certificate the transaction comes to an end  and in  SARFEASI act sale deed is not at all executed. Therefore the question of executing sale deed in favour of your nominee does not arise at all. Sale certificate issued in ur favour is the exhaustive title. 

Mr. Roger,

Thank you for your post. Are you saying that once I have received the Sale Certificate I am free to transfer the property to anyone of my choosing? If so, then I would like to seek you legal help as the lawyer at the local registrar office refuses to recognize the sale certificate issued in my favor as the exhaustive title. He says that first a bank representative has to come and execute the sale deed in my favor and only then can I proceed to transfer the property in someone else's name.

Kind Regards

Dear Mr.Amit your advocate is very much right and he is suggesting the right method in telling you that you require sale deed for the absolute transfer of the property in your name. Tell the bank to execute sale deed in your favour.as that is the only document through which you can further sell the property. Banks consider sale certificate as exhaustive  title and as far as my knowledge goes they transfer the property to the auction purchaser through this method only. But if you insist the bank they may consider your case and would try to execute sale deed in your favour. They may take some time in issuing it but tell them sternly that you need this at any cost as you are finding it difficult to sell the property.

Dear Mr. Roger, I think I did not understand your last post completely as it seems you are contradicting yourself in this one. What you are saying we have already discussed in previous posts and infact I have also cited the relevant case based on which the banks can transfer the property and execute the sale deed in favor of the winning bidder only. If you have some other legal opinion which applies to my situation and which can be used to convince the bank to act in my favor I would be very thankful as I don't think just talking "sternly" to the bank would reap any benefit.

Dear Mr.Amit tell the bank to execute sale deed in your favour so that you can transfer the property to anyone . First of all the reason for my contradiction is that initially I thought you were trying to transfer the property to one of your family members which can be easily done by settlement deed. But when it comes to asking the bank to directly make sale deed in favour of a person other than  your family member  clearly suggests that you are going to transfer  the property  to a private buyer by means of sale. In that case I dont think bank would entertain your request. Apart from that why I told you to talk strictly with the  bank is that once they collect the entire amount  they would hardly evince any interest in executing sale deed .  No citations would help your case and you CANT SUE THE BANK FOR DEFICIENCY OF SERVICE. 

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, allows banks and financial institutions to auction properties (residential and commercial) when borrowers fail to repay their loans. It enables banks to reduce their non-performing assets (NPAs) by adopting measures for recovery or reconstruction.

If a borrower defaults on repayment of his/her home loan for six months at stretch, banks give him/her a 60-day period to regularise the repayment, that is, start repaying. On failure to do so, banks declare the loan an NPA and auction it to recover the debt.

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