IDBI Bank sanctioned the home loan without legal verification.

This query is : Resolved 

08 December 2010

Please suggest how to proceed with this issue.

Respected Sir,
I, Joseph Kiran Pasala, working as a Software engineer, Hyderabad. I bring forward you the problem that I am facing with IDBI bank.

In November 2009, I have purchased a flat at Hitech city, Hyderabad, for which IDBI bank has sanctioned me a home loan. I was paying my EMI's up to date regularly.

In March 2010, I came to know that the property which I purchased was illegal. The property was sold to me by impersonating bogus land lord, builders and by creating forged documents which IDBI bank has thoroughly verified legally and issued me a home loan for the same.

After knowing that it is a fake property, I went to IDBI bank in person and asked them, how this can happen, as you have legally verified and sanctioned me a loan. They told that they will be suspend/dismiss/sack the IDBI employees who are all involved in it, but you need to pay the loan amount. They were also saying that somebody was living in that fake property from the past one year. Then I questioned them, if someone is living there from the past one year then how did you sanction me a loan? Still they insisted that, they will suspend/dismiss/sack the employees who are all involved in it.

Personally, I have enquired with one of the IDBI bank representatives about my loan sanctioning was illegal, he was also saying that ICON services(who processed my documents) is the most corrupted services, that they do anything (corruption) for sanctioning the loan. The fake owner/builders has colluded with the bank services and sanctioned the loan to my profile. I can give you the person name on request.

After paying 7 EMI’s, I have passed the instructions to my citi bank to stop payment of the EMI’s for the fake property at Hitech city.

I have started investigating personally and found that the fake Owner/Builder has bribed the bank employees and sanctioned loan to my profile without proper verification. I can mention the IDBI employee’s names who have taken bribe, with evidence on request. More over the employees of IDBI bank them self accepts that some of the services/employees are misusing the office and corrupted. I can give you all the details on request.

Five years ago, I have taken the home loan for another/different property in Hyderabad with the same profile. I have been paying the EMI’s for that property without fail till date; till now my track record is very good without any cheque bounces from the past five-six years. My banking track record is very good.

Trusting IDBI bank, I have processed another housing loan for the property at Hitech city. But unfortunately the fake owner/builder in collude with the bank associated members has cheated me by sanctioning me a loan on fake property. Trusting the bank I have paid the fake owner/builder 13 lakhs on top of the sanctioned loan amount.

Now the bank has started harassing and sent me a notice stating that they will be taking over the old property as I have stopped the EMI for the new property. I did not put the old property as a collateral security or mortgage or any other link with the new property. The loan was sanctioned purely on my profile base, then how the bank can take over the old property for their mistake. Which law says, even from the side of bank mistake I need to bare that?

As my old property is my hard earn property of my life time, they wanted to take over, for which I am not able to digest and leads me to frustration, I am not able to bare the mental tension/torture of the bank for their mistake. It leads me and my family to suicide. Please understand my mental torture and put me out of this issue.

Thanking you

Do I need to sacrifice the old property. this is concerning me a lot.

Raj Kumar MakkadOnline (Expert)
08 December 2010

A buyer should be vigil enough prior to purchase of the property so that he may not blame any other person. Though in your case the defaulter persons took the bank officials in their favour and got cleared your loan but there is no record as such. Now when bank has made entire payment on your behalf to seller (though a fake person)so bank has every right to recover the loan amount. If bank officials have ignored the descrepency prevalent on the face of those documents then also, you cannot take its benefit. You can take the plea of the only fact that you decided to purchase the property on being satisfaction of the bank officials. You may take this issue to DRT.

Raj Kumar MakkadOnline (Expert)
08 December 2010

So far as your old property is concerned, it is secure until you deposit the installments of the old loan matter.

Y V Vishweshwar Rao (Expert)
08 December 2010

I agree with Mr R K Makkad-

Bank is Creditor and he is borrower. However there are defects in verification of facts by the purchaser/Borrower and the Bank

Kirti Kar TripathiOnline (Expert)
08 December 2010


Guest (Expert)
08 December 2010

I agree with Mr R K Makkad-

Advocate Bhartesh goyalOnline (Expert)
08 December 2010

I also agree with Mr.Makkad.

malipeddi jaggaraoOnline (Expert)
09 December 2010

repeated querry. Replied already

Kiran Kiran (Querist)
09 December 2010

Thanks MR Raj Kumar Makkad, I have been paying the EMI for the old property with out fail till date. How to proceed to stop with the bank proceedings. Please suggest.

Y V Vishweshwar Rao (Expert)
10 December 2010

In View of the Facts of the case ,there is possibility of Court Attachment, of the Old Property( other Bank Mortgaged Property ) subject to other Bank Mortgage , in case filed by IDBI Bank to enforce the personal liability of the Borrower in the Fake Property House loan.

Khaleel Ahmed (Expert)
14 December 2010

Well advised.

Kiran Kiran (Querist)
11 October 2017

Hi Sir's, Thanks for your reply in the year 2010, Now the case has come to one conclusion please read below.
Hi Sir,
I have purchased one flat in Hyderabad in the year 2009 Nov, depending on the bank legal verification and valuation. But after 6 months I came to know that the flat owner (fake owner) and the builder (fake builder) in collusion with bank have sold the property to me. I have filed a criminal case against the bank and owners/builders in the year 2010 March. In the due course of the criminal case investigation done by the police now in 2017, bank has accepted and given in writing that there was a lapse in the legal verification and valuation report given by the concerned bank panel. All the guilt acceptance of the bank in writing has submitted in the charge sheet filed in the criminal case.
Prior to purchasing of this 2009 flat, I have purchased one Independent house in 2005 in the same bank by following the same procedure, and I have been paying EMI for that 2005 flat regularly.
In 2010 November, bank started sending me SARFAESI notices for both the properties, I have filed DRT case also at that time saying that I have been paying the EMI for 2005 property regularly, where in the new property which I purchased in 2009, I stopped paying EMI, at that time DRT has given me stay on both the properties and asked me to pay 5L to the old property. But now after investigation in the criminal case, bank accepted the guilt and given the written statement in the chargesheet, bank has sent me an OA notice only for good old property which I purchased in 2005.
Due to the above fake property in which bank involved, due to that property I have lost my job, lost money, peace, CIBIL record. These 7 years, I have to face other criminal cases, Police, CID investigation etc. It was my full time job roaming around the police stations, Courts etc till now. And still running around.
Now that bank has accepted the guilt in writing and I have taken the CA copy from the court, what are the possible ways that I can claim my damage, lost money, peace etc. and I have some loan amount left in my old property. Can I go to banking Ombudsman, Civil case, DRT case etc.
Please help me in giving good suggestions, thanks for your help in advance.

Rajendra K Goyal Online (Expert)
11 October 2017

Bank deals in money not in property.

If the credit decision was on wrong information / assessment bank does not loose the right to recover the loan due to language of the agreement.

You have your case against the builder / seller.

Due to right of general lien, Bank can recover its outstanding from other property mortgaged with it, if no court orders to the contrary exist.

Kiran Kiran (Querist)
11 October 2017

but Previously bank has sent me a recovery notice for both the properties, but now after seeing the investigation charge sheet and and also they have accepted lapse from their side, they have sent me recovery notice only for the old good property leaving behind the fake property. By this I can assume that the bank is now trying to recover only the good property amount.

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