My previous owner bought property with tainted money creatiprob.
I've purchased property (resale apartment 16 yrs old) on 02/02/2012 for 43,000,00.80% (35,000,00) I have got home loan and remaining 20% and registration changes I managed by pledging gold and saving . and the remaining transactions to owner (7,000,00) are made via DD and cheaque and 1 lac by cash.All the legal documents are verified by bank lawyer as well as our family lawyer everything was perfect and the owner has purchased the property via cash and DD from his previous owner. last week i got summon by directorate of enforcement to appear on 02/04/14.and the officer explained me about the transaction how my previous owner used to purchase the property and the case is in CBI before my purchase (09/11/2011) my previous owner had mentioned to the directorate of enforcement that using that fraudalent money (by getting money from canara bank with false documents) he has purchased the properyt and sold to me. I did not know about this during my purchase and I have submitted my all my bank transactions and movable and immovable assest and investment to the officer he was convinced and advised me to handover to my previous owner and cancel the sale deed and recover money from him or else the property will be confiscated by his dept/govt at present the owner is not traceable. I don't know what to do next I have invested around 20 lacs (including loan emi) for this property till date and now remaining 34+ lacs (18 years) is with bank loan.Till date I'm paying my EMI If suddenly the govt take possession of my property what should I do. I planned to inform bank first about this enquiry. Any legal advice pls to proceed next step. whether the bank will help me in this till i complete all my EMI? whether I can able to recover my property or it is useless? and the sub registrar office did got intimation from CBI before or after my purchase to withheld the property or no notice or seal for his property till date and I don't know how much depth the case is.
Asked 2 years ago in Civil Law from Chennai, Tamil Nadu
1) you are bona fide purchaser of value . you have taken home loan for 80%of value of apartment ie rs 35lakhs .
2) your loan has been duly sanctioned by bank and you have been regularly paying EMi to bank .
3)you have received summons from enforcement Directorate and you have duly furnished all documents to show that you have paid consideration to seller for purchase of property .
4) in such a case if enforcement directorate seeks to confiscate the property you will have to move court and obtain stay .
5)in the event you are able to trace whereabouts of seller issue him legal notice for refund of money and for cancellation of sale deed
6) in the event you stop paying EMI bank will take recovery proceedings against you . obtain recovery certificate for outstanding amount with interest
7) contact a local lawyer
1. Bank will lend no assistance to you as bank is concerned with only securing repayment of the amount advanced as loan by it.
2. Irrespective of the fact that seller sold you the property which he could not have lawfully sold, you were in complete oblivion to this fact. As such, you have assumed rights in this property regardless of the fact that you had no prior knowledge that the property could not have been sold by the seller.
3. Legally speaking, ED can confiscate the property at any time if the process of law against seller has not abated. Your liability to repay the entire loan will continue untrammeled by confiscation of property by ED. In order to protect your legal interests you may proceed to seek a stay order from the court against any contemplated move by ED to attach the property. Act now without waiting for ED to confiscate the property. The road to recovering the property after confiscation thereof by ED will be very difficult.
4. The seller will neither agree to refund the money nor cancel the sale deed. In such a scenario, moving court against seller will not be advisable.
5. Your emphasis at this juncture should be on protecting your property. Move court lest ED acts against you.