• Loan sanctioned against property in our possession for last 30 years

We live in a property in Delhi for last 30 years. My father, who is no more, purchased this property and sold it to my mother via registered GPA. We have that paper with us. But we don't have the chain of documents. We have every proof of possession of the property for the last 30 years and no one has put any claim until last year. A person has taken a loan on this property. How is it possibel that a bank gave loan to a person without physical verification of property? What if the loan is defaulted and bank personnel come to seal the property? Can we challenge the bank's process of sanctioning the loan with no physical verification of the property as the year when loan was taken by that person he was not in posession of this property and we were in total possession of this property for last 30 years and are in possession till date?
Also, the chian is not traceble as those were only notarized documents.
Asked 2 months ago in Property Law
Religion: Hindu

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16 Answers

You can take the defence of adverse possession that you are in open   Hostile,uninterrupted possession fir over 12 years 

 

2) you can also file suit claiming ownership rights on property on basis of adverse possession 

 

3) inform bank that  you are in possession fir last 30 years 

Ajay Sethi
Advocate, Mumbai
84070 Answers
5480 Consultations

5.0 on 5.0

You need to send a legal notice to bank and file conspiracy suit against bank. Contact me by searching on this site or Google.

Anand Shukla
Advocate, New Delhi
666 Answers
13 Consultations

4.9 on 5.0

Hi, Suppose, if the bank has issued a notice under securitization act you can reply the same through your advocate and you have very good case. It is clear case of fraud, I think bank has involved in the same. Better you can contest the same in the court of law. 

Pradeep Bharathipura
Advocate, Bangalore
5135 Answers
282 Consultations

4.5 on 5.0

Dear Sir

You must issue a legal notice to the bank 

Since you were in possession of this land for over 12 years, you can claim adverse possession. 

Search for relevant documents you can use to prove that the land was uninterruptedly in your possession for that time period.

Thank you

Anik Miu
Advocate, Bangalore
2499 Answers
26 Consultations

4.9 on 5.0

At the very outset, kindly inform the bank about this. In case, you find the bank is not cooperating with you or not inclined to help you out then I advise you to avail your legal remedies under civil law as well as criminal law.

1. You should file a suit for declaration of title over your property while also seeking a permanent injunction against the bank and the person who took the loan. But as you don't have complete property papers, you may file a case based on adverse possession (principle of continuous, uninterrupted use for over 12 years). In the year 2019, Hon'ble Supreme Court in Ravinder Kaur Grewal & Ors. v. Manjit Kaur & Ors, has clarified that a person claiming title by virtue of adverse possession can maintain a suit for declaration of title. The said precedent supports your circumstances. 

2. You should also file a criminal complaint against the bank and the person who took the loan because it seems they both in connivance with each other have executed the loan transaction. 

Hope this satisfies your query! All the best!

Abhinav Srivastava
Advocate, New Delhi
33 Answers
1 Consultation

5.0 on 5.0

In case, the bank has filed any suit in DRT against the person who has taken the loan,  you may implead in the suit as party and obtain stay.  Secondly, you may file criminal complaint against them.

Dalip Singh
Advocate, New Delhi
922 Answers
23 Consultations

5.0 on 5.0

- A notarized documents having no record with the notary , and only a registered documents certified copy can be obtained from the office of Registrar. 

- Further , if the said property was in the name of your father by way of a registered sale deed , then without mortgaged the property documents loan cannot be granted by the bank. 

- Further , a registered GPA if related to property , also having no value in the eye of law as per the Supreme Court judgment. 

- Further bank never will sanctioned loan on GPA , hence it is clear that the said loan was taken prior of purchasing the property. 

- Further as you having 30 occupation years proof with you then legally you can declared owner of the property on the ground of adverse possession 

- However, if you have received banks notice for the said loan , then submit the proofs with a reply to the bank .

 

You can contact me , if further suggestion needed. 

Mohammed Shahzad
Advocate, Delhi
7982 Answers
85 Consultations

5.0 on 5.0

1. In whose name the property now stands?

 

2. If your father had purchased the property by registering a sale deed, then you should have the original of it

 

3. If you do not have the original title deed in favour of your father, since deceased, obtain a copy from the office of the Registrar.

 

4. Also conduct a search from the office of the Registrar ascertaining whether there has been any entry of transactions in connection with the said property in the records or not.

 

5. If there is no such entry then the bank has kept in deposit a fake title deed.

 

7. If you do not have any valid title deed standing in the name of your deceased father, then you shall have to claim adverse possession once the Bank issues possession notice u/s13(4) of SARFAESI Act for taking possession of the property for selling it to receiver the dues of the mortgagor of the property.

 

8. Holding the title of the property in the form of registered Title deed is more important in claiming the ownership of it.

Krishna Kishore Ganguly
Advocate, Kolkata
26030 Answers
726 Consultations

5.0 on 5.0

1. The Bank will show that the visit was conducted.

 

2. I am the empaneled lawyer of various Banks and regularly peruse such inspection reports.

 

3. GPA is the Power of Attorney signifying that some power has been given by its executor to its holder. Irt is not a Title Deed. 

 

4. So, Banks should not consider GPA as title deed creating security interest on the said property by mortgaging it while providing loan to the Borrower.

Krishna Kishore Ganguly
Advocate, Kolkata
26030 Answers
726 Consultations

5.0 on 5.0

Bank would depute its staff to visit the property for which loan is being sought ,verify physical possession of borrower before disbursing loan 

 

you would not get loan if title is not clear and marketable.it would not be given on GPA 

Ajay Sethi
Advocate, Mumbai
84070 Answers
5480 Consultations

5.0 on 5.0

Yes they have their department who does the verification

Prashant Nayak
Advocate, Mumbai
24239 Answers
51 Consultations

4.4 on 5.0

  • These r the points in your favor.   It is not the time to sit and wait for answers.  Hurry up and hire a DRT lawyer and obtain stay otherwise, the bank may auction it as it where basis.  Any delay at your end may go against you.  U hv a good  case and take right step.  The answer to all your  questions is what you already know.
  • A1. Yes.
  • A2. Equitable mortgage is by deposit of Original title deed. U hv to see by visiting or writing the bank what they have with them.
  • A3. No nationalized bank give loan on GPA but private  bank do.

Dalip Singh
Advocate, New Delhi
922 Answers
23 Consultations

5.0 on 5.0

- As per the RBI circular , the bank must be satisfied with the mortgaged property , whether after an official visit and also before sanctioning the loan must legally satisfied with the documents of the property 

- Hence, if there was GPA , then loan cannot be sanctioned as this is not a title deed of the property .

- Read my earlier reply 

Mohammed Shahzad
Advocate, Delhi
7982 Answers
85 Consultations

5.0 on 5.0

Dear Sir,

1.It is a type of verification that banks conduct, before approving a home loan request, is known as technical assessment. Through this process, the lender tries to gauge the physical health of the property in question. The technical experts visit the property and examine its physical condition, building specifications and market value and decide on the loan they could offer for the property.

2. Process for obtaining loan against property is as under-

  • The customer has to visit the website of the financial lender and apply for the loan online.
  • The customer support team of the lender will get in touch with the applicant and request for the submission of relevant documents.
  • The lender will then verify the documents submitted and then inspect the property of the applicant.
  • If the application is approved, then the loan amount will be credited in the bank account of the customer.

3. For an individual residing in a GPA property, it is an uphill task to get a Loan against GPA Property from a bank. Banks usually don’t entertain applications for Loan against GPA Property. One of the main reason for this is that GPA doesn’t create any ownership of property for GPA holder.

Thank You!

Anik Miu
Advocate, Bangalore
2499 Answers
26 Consultations

4.9 on 5.0

The bank need not verify the physical possession of the property to the borrower, the documentary evidences produced by the borrower, if satisfies the conditions for loan, the bank may sanction the loan.

The registered GPA stands cancelled automatically upon the death of the Principal.

If your father had purchased the property by a registered sale deed, then as his legal heirs, your mother, yourself and your siblings can claim a share in the property as a right.

If there is no registered document on your father but if you have evidence to to prove that the property was in your possession and enjoyment for all these 30 years, then you can file a suit for declaration of title to your name operating the law of adverse possession. 

If the bank is claiming the proeprty on the basis of default in loan repayment by the borrower, you may challenge their claim in the court of law by filing an injunction application in the same suit for declaration. 

T Kalaiselvan
Advocate, Vellore
74174 Answers
1203 Consultations

5.0 on 5.0

There is no necessity for the bank to visit the property and inspect it before sanctioning the loan though there are certain mandatory conditions that the banks, if suspecting the genuineness of the property, can make a spot inspection to satisfy itself before sanctioning the loan. 

The registered  GPA is not a title document, hence the GPA holder cannot claim title to the property on the basis of the registered GPA.   

However if the GPA deed authorises the power agent to obtain loan on behalf of the principal, then the bank after due diligence may grant loan. 

T Kalaiselvan
Advocate, Vellore
74174 Answers
1203 Consultations

5.0 on 5.0

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