Indian bank came up with an Auction notice in leading newspaper on 29th of October 2010. so I decided to buy the property. After making the full payment to the bank they issued me SALE CERTIFICATE and asked me to complete the registration process. I asked them about the other documents for which they informed me that I just need sale certificate to complete the registration. I went through the registration procedure successfully. I got the bid from Indian Bank for 6,87,000.00 and I paid approximately 54,000.00 towards registration.
After 6 months of purchase at the time of Income tax assessment my C.A. asked me about paying property tax and he asked me about conversion of KHATA on my name. I had no idea about all these things. Then he explained me about the KHATA transfer process and for this I need all the documents and also tax receipt of earlier payments and KHATA copy of earlier holder. I approached bank again in and asked them to provide me all the original documents of the land so that I can complete the formalities. Even after visiting the branch several times for the original documents, bank was not in a position to provide me any of those.
I got suspicious and went through my own investigation. I went to BBMP office and took the Encumbrance Certificate (EC) of the plot which bank sold to me. I was shocked and horrified when I looked at the EC. In the Newspaper notice bank mentioned the name of the property owner and bank had told me the person pledged in the bank in 2006. Bank sold me the property in 2010 but there were two more sale transactions in between 2007 and 2009 for the same property. How is that possible when the property is pledged in the bank?
I visited the branch again and asked them in writing to provide me all the documents. To my surprise bank gave me Xerox copy sale deed which was sold to other party in 2007 by the person who pledged the property in bank. This clearly proves that bank are aware of this fraud, still they came up with public auction and sold the property.
I made complaint in Banking Ombudsman and they called me for hearing on 9th of this month. Can anyone help me out and let me know how good is my case and what all are the points which I should go prepared to RBI Banking Ombudsman.
In the public notice issued by bank, they have just mentioned about sale is made under “ As is where is and As is what is basis”. They have not mentioned anything about Encumbrance.
