SARFESI Act - Innocent purchaser trapped
I brought a property in 2006 from Mr X (Younger brother) which was already mortgaged with SBI and as part of the sales proceed I took a NEW housing loan from same SBI branch and cleared Mr X's liability. For 5 years I stayed in the house and fully cleared my SBI home loan.
One fine day when I paid the last installment of my SBI loan, another Bank Indian Overseas Bank (IOB) came to my door saying that this property belongs to them as My Y (elder brother of Mr X) had mortgaged (equitable) it with them in 2004.
Later upon investigation we found out that Mr Y (elder brother) had taken a Loan of 6.0 Lakhs by means of Equitable Mortgage by making Mr X as Guarantor with IOB. However, within 6 months Mr Y (elder brother) secretly and fraudulently sold the property to Mr X WITHOUT the notice of IOB and Mr X went ahead and obtained loan from SBI. SBI too did not verify properly and gave loan to a property which was already mortgaged. Interestingly, The younger brother updated the govt records at Sub Registrar office and transferred the property in his name in Record of rights/Khata etc.
Now both Mr X and Mr Y have absconded and SBI has washed away its hands. SBI declines to cooperate with me and to my RTI application seeking copy of legal opinion they say it is NOT ON RECORDS.
IOB keeps sending Section 13(2) notice to its original borrower marking a copy to me. However from 6 years they have been only sending section 13(2) notice only. nothing beyond that. I mean no Section 13(4)
I have filed a civil suite for injunction in 2011. The Bank is simply passing time and the case is going very slow from past 5 years. My counsel too does not have much knowledge on SARFESI Act
Please suggest whats the remedy for me as I am 100% innocent buyer who brought the property following the law of the land and after verifying all records taking loan from SBI and cleared it 100%
Its a clear case of Builder Bank and Bank Bank nexus. Both bank knew the fraud but kept quite and waited till I cleared my SBI loan and as soon as I cleared my loan the very next day IOB came to my door.
Thanks
Rajesh
Asked 8 years ago in Property Law
Religion: Hindu
Some more notable facts of this case
1. The Site of the property is NOT registered/approved by Urban Development Authority which was falsely claimed by Mr X and Mr Y in the sale deed. Both Banks failed to verify it
2. The said property was declared NPA by IOB in May 2008 itself, however, the IOB deliberately kept quite and issues Demand notice u/s 13(2) only in June 2010 after I cleared my SBI loan implies that they were quitely waiting.
3. IOB claims that the fraud came into their notice after 6 years whereas their borrower Mr X and Mr Y are renowned fraudsters and well covered in Media from very long time.
4. I approached IOB for OTS but they said OTS is between Bank and the Borrower. Whatever I offered was declined to be even acknowledged by IOB
5. IOB has till date not even send 1 single notice in my name. All notices are sent to their borrowers and I am on CC
Asked 8 years ago
Thanks for your response sir. My vendor is a serial offender and is Absconding, so there is no way I get a penny from him.
At places like Belgaum it is hard to find Lawyers having knowledge of SARFESI Act. Moreover, if I hire from outside say Bangalore, the legal expenses are beyond my pocket
Asked 8 years ago
