Reponsibility of bank in case of litigation?

There is nothing called IT APPEARS ,if you are sure about the fraud, then u can file criminal case against him under various sections of IPC,  and file civil suit based on IDEMNITY CLAUSE in sale deed against the person for recovery of money,as far as bank is concerned they have extended loan to you based on the documents provided by you ,if they find out this fraud,they will make you party  to this, you have obtained loan and you are suppose to pay it back the role of the bank ends there.

In this stage if you want to become defaulter to the bank, the bank can proceed legally against you.

Then what sort of verification is being done by the Bank?  We do rely on their verification outcome.

Shouldn't bank be blamed for their error?

Whom should we trust that the documents are valid and legitimate before going for property purchase?

Thank you

Sunil Kumar

There is no liability of Bank at all. You are liable to repay the entire loan amount with interest.

If you feel that the seller has sold you fake documents and done a fraud, then you can file a criminal case against the seller. Penalties for fraud offenses may include criminal penalties, civil penalties, or both. Criminal fraud offenses are punishable by jail, fines, probation, or all of the above. Civil penalties may include restitution (paying the person back) or payment of substantial fines (geared to punish the behavior). The penalties for your offense will depend on the nature, type, scope, and severity of the action and whether the seller is an individual or an entity, corporation or group. The intention of the seller, may be was to practice deception upon you to part with money for the land of which the transferor was never the owner, amounts to cheating and is punishable u/s 420 of the IPC .Section 420 of the Indian Penal Code covers offences relating to cheating and dishonestly inducing delivery of property, and leads to punishments of fines and/or jail terms of up to 7 years. The bank is no where responsible for this, as you are owner of the land now you will have to pay all the money to the bank, which the seller has taken from the bank. Get an expert to guide you through the entire process. you can call me at 09555 507 507 or send me a mail at info@lawkonect.com

Everyone should follow: “Buyer Beware”.

Bank is under obligation to conduct proper verification in person, KYC, and mark OSV on each document....................while granting loan. Hope bank has done its verification with you while granting loan.

If you got lured by advt. on internet and got trapped then you are also at fault.

Banks are required to give authenticated copies of documents executed by you free of charge. (cf. para 8.11.1 of Code of bank’s Commitment to Customers)

·         letter of offer

·         copy of filled in loan application

·         copy of loan agreement

·         terms and conditions governing the housing loan

·         other documents such as schedule of fees and charges

https://www.bcsbi.org.in/FAQs_HousingLoans.html

Hoper you have got everything.

Banks usually ask for legal Report of the property from lawyer’s known/on panel and customer pays for it and submits the legal report.

Did you go for legal report and encumbrance document...................

Approach a lawyer as ap with all docs you have and move fast before the website and its promoters that have committed fraud simply vanish.

Find out there whereabouts and legal cases they are involved in and try to be a party since you have been defrauded by them.............................

Lodge complaint with police to get them arrested and there may be a chance that the fraudster may agree to pay you.

Otherwise you are in for a long legal battle.

Mr. Kumar Doab is right in his opinion, it advised to follow it.

Appreciate your responses on my questions.

1. Don't I have a provision of stopping my loan payment until the matter the resolved, without impacting my credit rating?
2. I am still confused, as whom do I trust, before I buy a property?  Who is held responsible incase if the property has litigations?  Are you saying that in Indian Law, its always at buyers risk and no one is held responsible? 

By the way,

1. I havent gone for additional verification of documents, as the document was being verified by bank.
2. And the link, https://www.bcsbi.org.in/FAQs_HousingLoans.html is not working.  Please share the correct link.

Thanks

Sunil Kumar

If you don’t pay loan you shall be defaulter and bank shall proceed against you to recover from you.

You have to proceed against the seller.

The guidelines issued by RBI, IBA, BCSBI are available their respective websites and banks also maintain at their websites.

Meet a lawyer in person and understand the merits and remedies.