Risk involved in purchasing property from bank auction

ORIGINAL ANSWER GEVEN BY SUNNY SHARMA IN www.legallyindia.com six months ago:--------

     If you want to buy bank auction property then i m telling you the genuine procedure. first of all check the RECOVERY CERTIFICATE of that property which is issued by the presiding officer of DRT( debt recovery tribunal) to the recovery officer of the jurisdiction of the property with concerened bank. you have to fill the bidding form one day before the auction date till 5p.m.you have to pay 10% of reserved price of property reserved by the concerned bank.then you will be eligible for bid . if you got success for that property on auction day then you 've to pay 25 % immediate same day and rest 75% within 15 days .then after some formalities the authorised person of bank will go along with you to the registrar office to transfer the property in your name and he will also bound to give you the original title deed of previous owner. make sure before this the bank had verified the property before giving loan by your own sources.b'cose some instances happened many times before.you can also get the undertaking from bank where bank will be bound to pay huge penality if you dont get possession or the previous owner challange bank for wrong proceedings. If previous owner wins the you have to vacate the property n get your money back from bank with very difficulty.

Never buy on such terms and conditions. At least the title should be clear and no encumbrances, rest can be as is where is basis.

www.mehnat.in

Hi Minansu Bhadra,

Thank you so much for your valuable answer.  Still some of my questions are unanswered. Could anyone help me on these.

Required documents from bank:

original deed from bank if I win the bid.