You will have to pay stamp duty as per circle rate of property
In sale deed you can mention consideration as 30 cr but when you submit document for registration you have to pay stamp duty as per circle rate
Regarding NPA property from bank
We are interested in buying a property from Central Bank. The property is in auction since 2014 and the last tender for auction was on March 2017 but still there are no bidders.Last reserve price was 48 cr. But Banks are now willing to give it in 30cr in private sale. Is this possible can bank sell it . Will the stamp duty be charged on bank sale value or market value as the circle rates are very high
Asked 8 years ago in Property Law
Religion: Hindu
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9 Answers
Can bank sell privately without any paper notice with a price less than the last reserve price
Asked 8 years ago
If there is no adequate response of the auction the bank can change the reserve price and date of cution also.
So modifying the reserve price from 48 cr to 30 cr is perfectly permissible unless you could show there is mala fide intention behind this.
Yes,after the sale certificate is issued in favour of the successful bidder the proeprty will have to be registered by way a deed of conveyance on payment usual stamp duty and registration fees.
Without a 30 days private notice to the borrower and the newspaper publication no valid auction is possible.
Under SARFEASI act bank can sell property by private sale
2) property should be sold as per the reserve price fixed in the valuation report
Central Bank has published auction notice multiple times in news paper since 2014 but there were no bidders. If bank sale it in private with a price less than the last reserve price then will bank have to give a notice to the borrower and publish it in news paper also?
Asked 8 years ago
Yes,for every auction there has to be a fresh notice.
It is incumbent upon bank to issue notice to mortgagor about sale of property
It should be published in newspapers also
Is this possible can bank sell it .
Bank can decide to sell it at the highest price bidden or it can reduce the price if ther not takers in the auction.
Will the stamp duty be charged on bank sale value or market value as the circle rates are very high
The stamp duty shall be payable as per the sale consideration mentioned in the bank executed sale value of the property.
1. Bank can sell the property mortgaged with them on private treaty.
2. Ensure that proper documentation to that effect is completed,
3. In one case, the DRT has directed the Registrar to charge stamp duty and registration fee based on the price at which DRT has sold the property. You can take the said ground and if the Registrar refuse, you can file a Writ Petition before the High Court seeking relief.
1.Bank can sell at 5% cheaper price than the last offered price in private treaty.
2. Sale under private treaty are prone to litigation for which you shall be well prepared.
1. Sale through private treaty need not be published in Newspaper since it is not for public action.
2. The Borrower shall have to be informed about the said sale before hand.