I have availed a bank loan to construct a building with 8 flats. The original documents are now with the bank and they have registered the mortgage in sub registrar's office as well. Now we have sold 2 flats and the purchaser's bank has sanctioned loan to them. This loan amount is equal to the outstanding loan amount in our loan account. In this scenario, our bank is refusing to release the mortgage until the loan amount is cleared , while the other bank is insisting that amount will be released only on registration. How can this problem be solved? I cannot raise the entire outstanding by myself.
