Lloan advancement for a litigation property
SHIESTA007
(Querist) 14 August 2014
This query is : Resolved
Dear team,
Can the Nationalised Bank of India advance loan to property which is under litigation.
The suit was pending in civil court. Meantime the defendants made a plot to sell the property among their member and raise the construction on the suit property. But the high court ordered stay and in-spite of the stay they continued with the construction and when contempt was filed the commissioner was ordered to take care that the construction should not be continued.
The new purchaser who went with the illegal construction without the permission on the property took a loan at a bank. He is routing out the public money for his personal needs with high handedness of the bank officals on the litigation property.
please guide : can a person route out money for his personal needs when the property is under litigation?
The trial court has cancelled all the fraudulent sale deeds.
who is the best authority to complain or get the scam out to the public. I have got enough documentary evidences to show how the money was routed out.
ajay sethi
(Expert) 14 August 2014
it is for bank to take a call whether they want to advance money to property under litigation . generally banks avoid giving such loans . only if title is clear and marketable is loan given by bank
SHIESTA007
(Querist) 14 August 2014
Thank you Mr. Ajay Sethi for your reply.
There is evidences that the purchaser who has taken loan from the bank has not even given any documents for the advancement of the loan. In-spite of the revenue entries that shows the suit property was pending for disposal in the court of law still there was an advancement of loan from the bank to help these crooks.
Rajendra K Goyal
(Expert) 14 August 2014
If the Bank is satisfied and adequate collateral security / guarantee is available Bank can advance even on property under litigation. If it is satisfied about return of money supported by other collateral, it can give loan as per its directives.
If you feel that the Bankers have wrongly given loan, complaint to Regional Manager, General Manager and chairman of the Bank with timely follow up reminders.
For action taken use RTI if Bank is Public sector.
