• Existing dues of property purchased in auction

I purchased one flat at Mumbai from Bank of Maharashtra in e auction on "as is where is basis". However, when I went to take possession of the property, society informed that I need to pay the existing dues viz., building renovation and maintenance fees of Rs.6 lakhs along with interest of 60 thousand.
Please advice whether the same is to be paid by me or by the bank.
Asked 1 year ago in Property Law from Greater Mumbai, Maharashtra
Religion: Hindu

you have purchased the property on 'as is where is basis'

prior to bidding, you ought to have visited the property, taken its inspection and made inquiries with society and other authorities whether any outgoings are outstanding and due from the defaulter member

you were given this opportunity before entering your bid amount in e-auction, however you chose not to make the requisite inquiries, which a person of ordinary prudence is required to do

you did not exercise due diligence before purchase

so now you cannot cry foul

as property is purchased on 'as is where is basis', you alone are liable to pay the amounts demanded by the society

however you do have an option to challenge the society's demand if its not as per law/rules

there is nothing impolite in the reply, We are here to give legal advise and not to buttress anybody!

as a bidder, you should not be convinced merely on the information provided to you by the auction or bank officer

you ought to have visited the society and made inquiries with the managing committee, which it seems, you have not

as stated before, you can always challenge the society's demand, if its not demanded as per law

you can write to the deputy registrar of co-operative societies to issue directions to the society 

if there were maintenance arrears which were not paid by the defaulter, then society is entitled to charge interest on the maintenance amount 

plz seek inspection of records from the society office as to till what period maintenance was paid by the original owner 

also ascertain from other members if the renovation fee was charged and what was its quantum


Yusuf Rampurawala
Advocate, Mumbai
4858 Answers
29 Consultations

5.0 on 5.0

If the flat is purchased on as is where basis and there is no agreement regarding same then you have to pay dues.  It was your part to duty to take care before purchasing and now since it is not then bank will not pay same.

Shubham Jhajharia
Advocate, Ahmedabad
22882 Answers
93 Consultations

5.0 on 5.0

Dear Client,

 "as is where is basis" is no more a reason left to bank to avoid its liability and under DRT rules, it must be mention in Notice of auction about any dues left.
On this point you can get the recovery from Bank.
Another provision in law is buyer beware, that buyer must carry due inquiry before purchase. Contradiction, hence relief from court only.

Yogendra Singh Rajawat
Advocate, Jaipur
16743 Answers
21 Consultations

4.6 on 5.0

You have to pay the society dues as flat has been sold to you on as is where is basis 

Ajay Sethi
Advocate, Mumbai
72059 Answers
4334 Consultations

5.0 on 5.0

If the bank has auctioned off the flat, they should have done it encumbrance free. Thus the building renovation and maintenance fee should have been borne by the bank, not you. 

I'm based in Mumbai, and I gather you too are. Your number isn't shown to me here. Kindly leave that in feedback for further consultancy

Netra Mohanchandra Pant
Advocate, Navi Mumbai
1257 Answers
4 Consultations

4.4 on 5.0

You need to contact the bank as they need to sell your a flat with clear title and NOC from Society. It's deficiency from the part of bank. Dont pay the illegal charges

Prashant Nayak
Advocate, Mumbai
16701 Answers
30 Consultations

4.6 on 5.0

The society can not ask for this arrears from you.

The charges is to be paid for the services rendered and you having not received any such past services, you are not obliged to make this payment.

So refuse to pay such money i default of which the society can not stop you from enjoying the property nor the essential services like water or electricity connection can be severed.

If it causes problem you can file civil suit as well lodge complaint with the Registrar of society as well.

Devajyoti Barman
Advocate, Kolkata
18599 Answers
266 Consultations

5.0 on 5.0

When you buy a property through a bank auction, you may be required to pay certain charges that are not part of the deal. These include statutory dues, penalty over non-registered property, maintenance charges and pending litigation.

Mohammed Mujeeb
Advocate, Hyderabad
13837 Answers
6 Consultations

4.5 on 5.0

The bank has sold the property on as is where is basis, hence the amount due towards this property has to be borne by you only.

Thebank will wash away their liability or responsibility in this issue citing that the property was sold to you on as is where is basis.

No legal fight on this would be maintainable or tenable in law.



T Kalaiselvan
Advocate, Vellore
61997 Answers
800 Consultations

5.0 on 5.0

1. Before submitting your bid  for the said e-auction, you were required to enquire about the associated dues standing in the name of the mortgagee of the said property.


2. You shall have to pay the said outstanding amount for getting your name registered as a member of the said society.

Krishna Kishore Ganguly
Advocate, Kolkata
23548 Answers
640 Consultations

5.0 on 5.0

Dear Sir,

If you do not agitate such claim, then you have to pay it.  It is duty of Bank to see that all dues are paid and your liability arise only from the date of entering into possession of the property.

Netravathi Kalaskar
Advocate, Bengaluru
4591 Answers
22 Consultations

4.8 on 5.0

It has to be paid by you not the bank. You ought to have conducted complete due diligence before purchase.

Ashish Davessar
Advocate, Jaipur
27476 Answers
812 Consultations

5.0 on 5.0



Bank needs to disclose all the dues pending for the property in their sale publication. Bank cannot seek protect under clause 'As is where is basis'.

It is the bounded duty of the Bank to clear all the due before putting the property for sale under SARFAESI Act and Rule 8(6) of the Security Interest (Enforcement) Rules 2002.

You can file Writ of Mandamus in the jurisdictional High Court praying for the Bank to take all appropriate action to clear the pending dues.



Archana Shukla
Advocate, Bangalore
26 Answers
1 Consultation

5.0 on 5.0

Dear Sir,


You will have to check the document and clauses in the document by which you have purchased the said flat on as is where is basis. Please check whether the existing dues would be paid by the Purchaser or the bank.

Uma Vyavaharkar-Acharya
Advocate, Mumbai
33 Answers
1 Consultation

5.0 on 5.0

it must be paid by the BANK.

G Suresh
Advocate, Chennai
390 Answers
4 Consultations

4.9 on 5.0

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