Validity of EQM


A case of bank financing for purchase of a house constructed on a particular plot of land. The sale deed was also executed consisting of a house and the EQM was created in bank's favour. It is now revealed that there is no construction on that particular plot mentioned in sale deed and that constructed house is situated on some other plot in the same locality. Query : Whether the EQM created in bank's favour is valid and the bank can take possession of the plot for sale?
 
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Consultant

Mr. Dharam Veer,

Question of validity of EQM comes later, first comes the question of validity of the action by the concerned executives of the bank.

I don't know in what capacity you are asking this question. But, of course, the inspecting officer of the property and the loan sanctiong authority definitely need to be charge sheeted for major penalty on this case, if it exists in reality. In addition, the lawyer or the law officer of the bank, who might have given clearance on the proposal is also liable to be criminally tried in the court of law.

By the way, in what circumstances, such type of dreadful mistakes happened at the time of sanction of loan?

 

 
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