Hi, I have recently purchased a property in NOIDA through Bank EAuction under Sarfaesi Act. The bank has taken their payment and have given the possession of FLAT along with SALE certificate on their letter head along with SALE DEED, ALLOTMENT LETTER, POSSESSION LETTER, BUILDER BUYER AGREEMENT. After that, the following dues were cleared by me: 1) Water dues to society 2) Electricity payment against old meter 3) Society dues including maintenance charges, penalty etc. 4) IGL payment against old meter Now, i am unable to transfer property in my name (NOIDA AUTHORITY) due to following reason a) Currently the flat stands in name of earlier owner in NOIDA Authority. For transfer of ownership (Mutation), TRANSFER MEMORANDUM (TM)has to be signed by the owner in prescribed form and charges for transfer (approx 5.5 lacs) have to be submitted. As the owner is not there, Question1: Who will sign the transfer memorandum? Question 2: Currently, Noida Authority do not honour the signed and stamped TM by bank official for mutation / transfer of property in their records? What is the way around this. Question 3: Bank is saying that, as per current rule in SARFAESI, it is not mandatory to REGISTER SALE DEED AFTER AUCTION AS SALE CERTIFICATE IS ENOUGH. Though they are ready to present BANK AUTHORIZED OFFICIAL for REGISTRATION OF PROPERTY at SUB REGISTRAR OFFICE, Should we go for registration of property or not?
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You must register property in your name at sub registrar office
2) bank is correct that registration is not necessary but advisable to do so
3) after registration apply to noida authority to mutate property in your name
4) if they refuse file writ petition in HC to direct tjen to do so
Who signs the Transfer Memorandum (TM)?
Since the original owner is unavailable, the Noida Authority typically does not accept TM signed by the bank, even though the sale is under SARFAESI. This creates a legal hurdle.
Way around the TM issue:
File an application with Noida Authority citing SARFAESI provisions and submit all documents (Sale Certificate, Possession Letter, etc.).
If rejected, file a writ petition in High Court to direct Noida Authority to transfer ownership based on SARFAESI sale.
Should you register the property?
Yes, get the property registered at the Sub-Registrar’s office with the bank official present. While the Sale Certificate is valid, registration strengthens your legal title and is highly advisable for mutation and future resale.
Yes sale certificate is enough if received after auction
1. If the property was purchased through bank auction then the bank should sign the papers for transfer.
2. You can check with the NOIDA about it and proceed accordingly.
3. No, the bank has to register the sale after selling it by auction.
4. You should get the property registered on your name through bank.
Dear Sir/Madam,
The answer to your queries may be as follwos:
Question1: Who will sign the transfer memorandum?
Since the original owner/allotee is not available now and now the actual owner is the Bank who sold the property to you. The said memorandum shall be signed by the AR of the bank with supporting documents including but not limited to court orders.
Question 2: Currently, Noida Authority do not honour the signed and stamped TM by bank official for mutation / transfer of property in their records?
What is the way around this.
The refusal of Noida authority is unjustified and illegal. You may take legal steps such as offical letter from Bank, legal notice by your Advocate as well as civil suit in the court for the same.Question 3: Bank is saying that, as per current rule in SARFAESI, it is not mandatory to REGISTER SALE DEED AFTER AUCTION A SALE CERTIFICATE IS ENOUGH.
Though they are ready to present BANK AUTHORIZED OFFICIAL for REGISTRATION OF PROPERTY at SUB REGISTRAR OFFICE, Should we go for registration of property or not?
In the present circumstances, when Noida authority is not accepting, the said document by the bank as well as presence of AR of the bank is quite necessary before the authority.
