• Encumberance

I bought 2Floor Building through Andhra Bank, Visakhapatnam E-auction and registered  sale certificate on 23-3-2015. In sale certificate mentioned sale of scheduled property was made free from all encumbrances known to Andhra Bank.  But Property tax Rs.41,786/- was arrears due was paid by me.  The sold building is not having approved plan from local authorities.  Recent Building Regularization Scheme applied for Regularization and local authorities ask me to pay official amount of Rs.3,09,833/- for regularization.  Is it possible to get the money reimbursed from Andhra Bank since it was mentioned in sale certificate encumbrances known to andhra Bank Nil.  If at all go to court of law what are the  chances of win and Consumer Forum is the right place.
Asked 12 months ago in Civil Law from V Suryanarayana Raju, Andhra Pradesh
1) before purchase you ought to have done due diligence 

2) checked whether building had been constrcued as per sanctioned plans and title was clear and marketable 

3) you can if you so desire seek to move court and claim amount paid by you for regularisation from Andhra bank 


Ajay Sethi
Advocate, Mumbai
27276 Answers
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Hello,
1) You can certainly hold the bank responsible for the incorrect non incumbrance certificate issued to you on basis of which you purchased the property and for the property tax in arrears that was paid by you.

2) You can file a consumer complaint against the bank to compensate you. Issue a legal notice to the bank first asking for reimbursement of the amount you had to incur as a result of the bank's error. It is clearly an instance of deficiency in service on part of the bank.
S J Mathew
Advocate, Mumbai
1987 Answers
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A deviation from approved plan is not an encumbrance per se. If you knew beforehand that the building was without a sanctioned plan then you cannot now recover the amount from the bank. In any case the remedy is civil court and not consumer forum.
Ashish Davessar
Advocate, Jaipur
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Hi, you can't get the amount from the Bank before purchasing the property you have to verify it whether building is approved plan or not.
Pradeep Bharathipura
Advocate, Bangalore
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1) if bank had mentioned in advertisement that titje is clear and marketable you can seek to recover the regularisation charges from bank 

2) issue legal notice to bank to reimburse yiu amount paid by you 

3) if bank fails to pay file writ petition in high court in this regard 
Ajay Sethi
Advocate, Mumbai
27276 Answers
1483 Consultations
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Hi, do one thing you can file a Consumer complaint against bank for deficiency of service and ask the bank to pay the 3 lacks Rupees as you are under impression that after due verification of the property bank has advanced the loan and  it has good and marketable title because of the bank failure to identify this issue you are suffering loss.

2. First issue legal notice and then lodge a consumer complaint.
Pradeep Bharathipura
Advocate, Bangalore
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149 Consultations
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You should have issued a legal notice for cancellation of sale deed and then filed a suit for cancellation of sale deed to claim the recovery of sale consideration along with compensation. 
Ashish Davessar
Advocate, Jaipur
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507 Consultations
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