Hello,
I've purchased a flat (resale) in 2007 in Hyderabad from X for 16 lakhs. X bought the flat from Y in 2006. Y bought the flat from builder in 2003.
X purchased the flat by availing home loan from LICHFL. When I was purchasing the flat from X, I was told by LICHFL that by loan transfer the process becomes simple.
The officials also said that the flat is legally clear and all the original sale deeds (of Y and X) are under their custody as mortgage.
I also satisfied myself by verifying the then latest encumbrance certificate. Everything, was clear. So, I agreed for loan transfer.
A cheque was issued by LICHFL to close the existing loan of X and another cheque was issued for the balance amount (appreciation) to X.
Recently, SBI officials came to my flat with a possession notice stating that Y had taken a home loan in 2003 for the same flat and as they failed to repay
the loan the asset became NPA and they could sell it under SARFAESI Act to recover their loan. They claim that the original sale deed of Y is deposited with
them as equitable mortgage. They claim that the amount to be recovered is 10 lakhs (balance principal + interest + penalties).
After a month, Citibank has come with a similar claim that Y availed a home loan in 2003 by depositing their sale deed as mortgage.
They say that the amount to be recovered is 5 lakhs. Both loan dates and registration date are very close (within a week time).
I consulted LICHFL and told them about these claims and asked them to verify the authenticity of the sale deeds under their custody. It turned out that the sale
deeds of mine and X are original but Y's is fabricated. The LICHFL officials however, didn't accept on paper that Y's sale deed is fabricated. They also said
that only one bank (either SBI or Citi) is having the original sale deed and the other one would be a fabricated one.
They advised me to get a stay order (against both SBI and Citibank) and file civil and criminal cases against X and Y.
X and Y are now not traceable. They are not living in the same addresses mentioned in the sale deeds.
My motive is to retain the title of my flat as I've already paid substantial amounts towards EMI.
Now, my questions here are:
1) What would happen to the flat? Can I still continue to let out my flat?
2) Will I be liable for both the loans of Y? Or would I be liable to pay the loan for the bank who has original sale deed? How can I know which bank has the original
sale deed? Will I be eligible for OTS option?
3) What is the liability of LICHFL in this fraudulent transaction? Is LICHFL not liable for not verifying the authenticity of the sale deeds deposited by X and for giving false certificate that original sale deeds are in
their custody? I was told that it is difficult for a common man to make out the difference between fabricated and original document and banks have legal and document
experts whose job is to verify the authenticity of the same.
4) What is the liability of me as LICHFL's borrower? Should I still continue paying my EMIs even when LICHFL doesn't have valid mortgage?
5) Is there a provision in law that I can make use of and force LICHFL enter into a compromise with which ever bank has the original sale deed?
6) Did some cases happen similar to mine and how were they resolved? It would be more helpful if you can cite the case numbers and judgements if they are in
public domain?
Please reply.
Thanks.
