The property must be auctioned by order of DRI. So bank will provide you NOC before registration for that you can send a letter demanding NOC from DRI before paying complete amount. 

If bank refuse to provide NOC You should immediately file a civil suit against bank for injunction on paying balance amount.

Write to bank to obtain NOC from DRI and that you are willing to pay balance amount 

2) if bank refuses file writ petition in HC offer to deposit balance amount in court and request court to direct bank to obtain NOC and in alternative refund your money 

Act as advised herein above 

1. You must sue the bank for breach of contract on grounds of concealment of facts and fraud, to claim the amount you paid + compensation. 
2. You first need to serve a legal notice upon the bank to that effect. 
3. I'm prepared, to serve the legal notice and to plead your case in court as your counsel However​, I require an exhaustive consultation session with you first. I'm based in Mumbai/Navi Mumbai just as you are; so it shouldn't be much difficult for you to visit me.

The bidder is required to do his due diligence before paying the emd or any further amount to the bank

The banks always sell such secured assets on as is where is and whatever is there basis

Since you did not bother to exercise legal due diligence and make inquiries about the encumbrances on the property being auctioned, it is presumed that you are aware about all encumbrances affecting the property

So now If you do not proceed with the transaction then the bank can forfeit your emd as per the auction terms and pass on the property to the next highest bidder

Ideally before expiry of date for depositing emd, you ought to have made requisitions and raised objections regarding title of property with the bank and required it to comply with the same. You having not done so, cannot now cry foul and that is how it works in auction sales

You must have purchased in bank auction. Banks are like this, to recover there debt, auctions the property without declaring encumbrance. Disputed property, purchase not advisable. Demand refund and cancellation of booking for concealing encumbrance by bank. 

In actual bank has committed fraud.

first file a police complaint against the bank for misleading you and cheating you with mala fide intentions.

if the Police do not take your complaint then we can move to magistrate court for the same.

you will have to file a civil suit wherein demanding since there has been intentional cheating done to you and so the money paid to you should be refunded with interest.

pls contact for further discussion

If you back out then bank can forfeit your EMD as per terms and conditions. 

you can file complaint before banking ombudsman. 

you can also file complaint before district consumer court. 

You have to file the complaint at the office of the ombudsman under whose jurisdiction your bank branch is located. 

You have to file the complaint at the office of the ombudsman under whose jurisdiction your bank branch is located. 

You issue a legal notice to the bank stating that the bank has suppressed the material fact of NOC from DRI before selling the property to the auction bidder.

Hence you can seek refund of EMD since you are not interested in proceeding with the purchase.

After that you can file a money recovery suit  against the bank to recovery the EMD held by them.

The property would have been sold on as is where is basis, if you had accepted the terms then it will be difficult for you to recover the EMD and even you may not get the EMD or cancel the bidding.

However you may discuss with your advocate and proceed on the advise made