• Duped by a bank official

Sir/Madam,
I am a NRI holding NRO  account in a nationalised bank.

During a visit to India in September 2013, I was approached by a bank manager about the sale of a secured property that was classified as NPA that belonged to a NPA account holder  of the same bank.

I was assured verbally bank manager that if I pay the loans that belonged to the NPA account holder, the BoB  will arrange to hand over  the property held as a security in the bank by the NPA account’s company.
NPA account holder of the bank borrowed the loan by mortgaging the titles of 
1.	 their home papers held in their name and 
2.	a land only property held in their company name.


In this regard, an agreement was prepared by the bank manager using his /bank’s advocate.
It was signed both by the NPA account holder and I with the clause ‘as is where is” saying, after the payment of the loan by me in full, the NPA account holder gets their home and the company will be transferred to me that has the secured landed property in the bank  and is held in the NPA company holder’s  company’s name.
The agreement also said that payment was to be made by me to four different accounts held by the NPA account holder in the same bank.

We completed the payment  by July 2014 starting from Feb-2014.
Initial payment of advance for this agreement was paid to an account in the same bank which we found that it belonged to the bank manager’s relative.
I agreed to this arrangement only on  the total faith on Bank, with the belief that the landed property is genuine property with legitimate title, as it was represented by the bank manager. 

We were made to believe the NPA account holder’s company were the rightful owners of the landed property. “Only on this basis that the company is the rightful owner , the bank provided loan to the NPA account holder”, the manager assured.

As this property was held with the bank as the security and arranged by bank officials themselves, the payments were made as the internal payments to the NPA holder’s accounts.

Since the day of payment in FEB 2014  till now (Feb-2017) , we could not take the legal possession of the property that was held as the security by bank towards the liabilities NPA account holder.

The supposedly secured property that was held as the security by the bank did not belong to NPA account holder’s company.
The Patta was found to be fake as confirmed by the local Tahsildhar’s records.
We are in loss of amount paid and further interest amount since FEB 2014.
In our opinion, it is clear that , we were duped by the Bank officials , probably in collusion with NPA account holder. We are made to strongly believe this because the house was passed on to the NPA account holder and the landed property with fake documents was passed on to us.


As the NRI account holder I was dealt wrongly  with the intention of passing the bank’s liability on me. Proper duty of care by bank officials was not provided to me. Since the payment of  amount to BoB towards this transaction, I am under extreme mental stress and financial burden.
 
When we followed up with the banks, they say “the NPA accounts are closed now” and no other comment.

Is there any possibility of recovering the amount we paid towards this transaction from Bank?

Or alternatively get the bank to retrieve the share of the house property of the NPA account holder that was held as another security at bank towards these loans.

Or claim damages from Bank?
Asked 7 years ago in Criminal Law
Religion: Other

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8 Answers

1) it is necessary to peruse agreement signed by you with the NPA account holder

2) it appears that property was sold to you on as is where is basis

3) in such a case you have to do due diligence and check whether title is clear and marketable

4) there is no documentary evidence that bank informed you that title is clear and marketable

5)if patta of land is fake you have to file police complaint of cheating , criminal breach of trust against the seller.under section 406, read with section 420 of IPC

6) sue the seller to recover your money paid with interest

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

HI

1) It is a classic case of cheating and fraud played upon you by the bank manager who has abused his official position and also committed criminal breach of trust of the fiduciary relationship existing between the banker and the client.

2) The bank will also be held responsible for the fraudulent act of the banker.

3) You are entitled to file a criminal complaint under sections 25, 405, 409, 420 of IPC against the NPA account holder, Bank manager, Bank Staff and the Bank on the basis of the following documents:

a) The agreement signed both by the NPA account holder and yourself wherein the clause ‘as is where is” is incorporated outlining the details such as after the payment of the loan by you in full, the NPA account holder gets their home and the company will be transferred to you that has the secured landed property in the bank and is held in the NPA company holder’s company’s name.

b) Proof of the payments that were made as the internal payments to the NPA holder’s accounts.

c) Proof of Initial payment of advance for the above mentioned agreement that was paid to an account in the same bank which you found out to belonging to the bank manager’s relative.

4) You should also note that under section 468 of Cr.p.c(limitation clause) you should file the complaint within 3 years from the date of your payment.

5) Filing of criminal case will result in punishment of the fraudulent bank manager, his relative to him the money was remitted and the NPA Account holder and bank will also be liable to pay you damages for the fraudulent act done by the bank manager.

6) You will also recover your money along with interest from the bank subsequent to you filing the criminal complaint.

7) There are other alternatives such as complaining to Chief Vigilance officer of the bank that are available to you in case you wish to resolve the matter at the earliest, but you cannot claim damages from the bank if the chief vigilance officer resolves your issue.

8) Alternatively if the value of the monies lost is greater than Rs300lakhs(Rs3Crores) you can also file a complaint to Central bureau of Investigation (CBI) against the bank, its bank manager and other staff.

Foot note:

Section 25 of IPC- Fraudulently.

Section 405 of IPC-Criminal breach of trust by NPA holder

Section 409 of IPC . Criminal breach of trust by public servant, or by banker, merchant or agent.

Section 420 of IPC - Cheating.

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

1. This is not the way to buy mortgaged properties from the Bank after the accounts become NPA and SARFAESI Action is initiated against those defaulting Borrowers.

2. You have been completely duped and cheated by the Bank Manager probably being in collusion with the NPA holder.

3. The outstanding amount of the NPA holder can not be paid to the account of the relative of the Bank Manager.

4. Before entering in to such deal, you should have entered in to a tripartite agreement with the Bank and also the NPA holder in connection with your acquiring the mortgaged property after your clearing the debt of the NPA holder.

5. Since you have remitted the amount through Bank transaction, it can not be denied that the Bank has received the amount from you.

6. Bank can not receive and accept payment from X to settle the dues of Y.

7. so, the Bank shall have to show where they have used the said amount and why?

8. Hope you have not given any thing in writing to the Bank stating that you are making payment of the amount settling the dues of the NPA holder voluntarily.

9. Write to the Bank immediately claiming back the said amount paid by you to yours particular Bank account immediately.

10. In case the Bank fails to do that lodge a police complaint marking a copy thereof to local S.P./D.C and also Bank's Ombudsman and Chairman.

11. If police does not take any action, file a Writ Petition before the high court against police inaction seeking relief.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

1. You failed to conduct due diligence before purchasing the property. The duty to care i.e caveat emptor was on your shoulders.

2. Now file a criminal case for cheating and criminal breach of trust against the branch manager and also file a civil suit to recover the sale consideration with heavy compensation.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1) the period of 3 years would be counted from date of discovery of fraud

2) you can issue legal notice to NPA holder before filing of suit

3) if he refuses to pay then file suit to recover your money with interest

4) if money was paid in Chennai and bank branch is in Chennai suit has to be filed in Chennai

5) complaint to CBI can be made in writing by you directly

6) legal fees vary depending upon lawyer engaged by you

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

Is there any possibility of recovering the amount we paid towards this transaction from Bank?

Or alternatively get the bank to retrieve the share of the house property of the NPA account holder that was held as another security at bank towards these loans.

Or claim damages from Bank?

You have been cheated by an individual or group of individuals in collusion.

The bank cannot be held responsible to this fraudulent act.

it is the manager who cunningly and cleverly manipulated all the records in order to make you belief that it is genuine.

It was your fault that you did not obtain legal opinion from your own advocate.

You did not even get a doubt about why should you pay the amount to four different accounts and one being the relative of the bank manager.

So you have been fooled by individuals and not be by bank'

You may initiate a criminal complaint agaisnt the bank manager, the account holder and who all shared your money.

You lodge a criminal complaint and expose this racket to the world. You may lodge a complaint with the crime branch police.

The bank will not come to your rescue until you make a complaint against the bank manager with it.

T Kalaiselvan
Advocate, Vellore
85369 Answers
2231 Consultations

5.0 on 5.0

Would the last date to file the case will be 16-Jul-2017?

The last date would be 17.7.2014

1. The criminal complaint should be lodged with the jurisdictional police station

The cost and other details may be enquired form the advocate who you would engage.

2. You cannot make a direct complaint with the CBI, instead you can prefer a complaint with the District crime branch or economic offences wing of police.You can submit your complaint directly.

Costs:

What would be the approximate legal costs would be to get the outcome?

It depends on what cases you intend to file and complaints you would lodge.

T Kalaiselvan
Advocate, Vellore
85369 Answers
2231 Consultations

5.0 on 5.0

1. You shall have to file the Civil Suit within 3 years of the date of the cause of action i.e. with in 16.7.2017. Lodge complaint to Police and Bank's Management including the Ombudsman and then file the Writ Petition before the Hight Court at Madras as suggested in my earlier post.

2. The Court will judiciously levy penalty/compensation and cost for which claiming excessive amount towards compensation and cost should be avoided.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

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