Bank Mortgage Fraud: Non-Existent Property Loan

Suhita Mukherjee (Querist) 21 May 2020 This query is : Resolved
Respected Sir
A critical problem crop up in a bank where a borrower mortgaged his teacher mother property in bank to secure a loan and his mother is also stood as guarantor.Title deed is also available in registration portal but while taking possession of the property bank is saying 2 cottah property mentioned in title deeds is for 12 ft rasta no property exists.Lawyer as well as valuers did searches and valuation.Bank'complaint is right or occupied by other ? What is way out?

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Raj Kumar Makkad (Expert) 21 May 2020
A fraud has been played with the banker but who can deny that even concerned bank official is also responsible for the said fraud as either he failed to visit the specific property prior to the sanction of the loan or closed his eyes and believed upon the search reports submitted by bank panel lawyer and valuer for the reaons best known to him.

Bank should lodge FIR and should initiate the recovery proceedings by cancelling the sanction of such loan though the amount already disbursed.

Suhita Mukherjee (Querist) 21 May 2020
Dear Sir
No one deny genuinity of title deeds rent receipts is also there it is very difficult to find the property mentioned in the title deeds

Suhita Mukherjee (Querist) 21 May 2020
How in government portal such title deeds exist

Raj Kumar Makkad (Expert) 21 May 2020
It is dilemma that on bifurcation of the land in plots and streets, the title of the owners still gets shown in the revenue record, though the share shown in the names of the owners actually form part of the streets. This problem is common in small towns and big villages which recently have come within Lal Dora/Lal Lakir.

Suhita Mukherjee (Querist) 21 May 2020
Dear Sir
Actually total 10 cattah plots bifurcated into plots one shareholder was in Bangladesh he searched Register 2 and found 8 cottah sold then he sold rest 2 cottahs

Suhita Mukherjee (Querist) 21 May 2020
Dear Sir
Owner paid land revenue and in possession of LPC

Rajendra K Goyal (Expert) 21 May 2020
As far as the non-availability / nonexistence of property is concerned, whether any legal report (search report) was taken before proceeding for mortgage. If yes, proceed to blacklist the Lawyer from Bank Panel if found guilty. Starting for Departmental disciplinary proceedings should be recommended against the against the concerned officer and the Manager.

Rajendra K Goyal (Expert) 21 May 2020
Bank can proceed to lodge FIR against the borrower / guarantor for the alleged fraud after clearance from law department / controllers at controller’s office.

Rajendra K Goyal (Expert) 21 May 2020
If the land is not traceable, Bank can proceed to recover the loan alternately through recovery suit.

Bank can file recovery suit against the borrower and the guarantor, should leave aside the proposed action as per SARFAESI ACT, 2002.

If the Guarantor is teacher in Government School, part of her salary should be got attached.

If the Borrower / guarantor are having any other property, court can be approached to get that attached.

KISHAN DUTT KALASKAR (Expert) 21 May 2020
The Guarantor is teacher is under risk

Suhita Mukherjee (Querist) 21 May 2020
Dear Sir
Guarantor is a Govt pensioner.My query how it could be ascertained no land is there it may be encroached .Bank is deciding on the basis of 2nd valuation report.But so far no effort was made to ascertain with Government valuer and another expert lawyer to decide on the matter.Neithet Government department is consulted .

Suhita Mukherjee (Querist) 21 May 2020
Dear Sir
Guarantor is a Govt pensioner.My query how it could be ascertained no land is there it may be encroached .Bank is deciding on the basis of 2nd valuation report.But so far no effort was made to ascertain with Government valuer and another expert lawyer to decide on the matter.Neithet Government department is consulted . Government Surveyor.

Raj Kumar Makkad (Expert) 21 May 2020
The mortgagor shall tell and his neighbours shall affirm which particular land belongs to him and how the amount of the loan has been utilized upon that plot. The registered sale-deed and annexed site plan might be depicting the boundaries of the said plot. The same is a vital evidence. The description of the property is an essential part of the sale-deed so better to study all these documents minutely and tally the latest obtained reports with the perivous one submitted by valuer and lawyer. The discripency shall immediately come out. It is the mortgagor who shall tell the exact location of the land belonging to him.

Dr J C Vashista (Expert) 22 May 2020
Please clarify whether the borrower has submitted title documents of teacher mother wherein she is the guarantor or principal borrower ?

P. Venu (Expert) 22 May 2020
Have you discussed the matter with the concerned Revenue officials? You can also gets concerned property surveyed and boundary fixed by the Government surveyor.

Suhita Mukherjee (Querist) 22 May 2020
Respected sir
Thanks a lot

Raj Kumar Makkad (Expert) 22 May 2020
You are always welcome Mukharjee.

Rajendra K Goyal (Expert) 22 May 2020
Take help of some retired revenue employee / patwari to identify the property and getting the record corrected.

Raj Kumar Makkad (Expert) 22 May 2020
Patwari is not a competent authority to identify the exact location of the said property rather an application is required to be moved to Tehsildar, who in turn shall mark to local Girdawar and further Girdawar shall conduct the procceding. Obviously, Girdawar takes help of Patwari, Nambardar and other revenue officials for the said purpose.

P. Venu (Expert) 22 May 2020
Let us not jump to hasty suggestions. Land and Land Revenue is a State subject. Each State has its own system and procedure as to survey and demarcation.

Rajendra K Goyal (Expert) 23 May 2020
Title documents of the property exists. Property is shown on the portal.

Possibility can be that some person has unauthorisedly occupied the property.

Help from revenue department may solve the problem.

Previous seller with witnesses of sale deed should also be contacted.

Raj Kumar Makkad (Expert) 23 May 2020
What is harm to contact the mortgagor/owner of the said land? If he has purchased the same from its previous owner by paying sale consideration and has also paid revenue stamp then it might have also taken its possession so he can get the property identified if asked to do so.

Rajendra K Goyal (Expert) 23 May 2020
Yes, the mortgagor may be contacted and he / she can help in locating the property provided he / she is ready to cooperate in such situation when recovery proceedings have been started.

Raj Kumar Makkad (Expert) 23 May 2020
Thanks Mr. Goyal for agreeing with my reply.

Suhita Mukherjee (Querist) 23 May 2020
Respected Sir
Thanks a lot for the guidance

Rajendra K Goyal (Expert) 23 May 2020
You are welcome. May revert in case of any further question on the issue.

Raj Kumar Makkad (Expert) 23 May 2020
You are always welcome Mr. Author.

Suhita Mukherjee (Querist) 23 May 2020
Respected Sir
All these valued guidance are helpful.But though land descrption 12 ft Rasta is there how 2nd valuer says the plot mentioned in the title Dee's is for 2 cottah is actually road no land.Is it possible?

Guest (Expert) 23 May 2020
First Seek the help of the Surveyors at concerned Registrar Office or the Tehsildar Office and Confirm the real status of the concerned land. You could also seek the Clarification thro Right to Information and you would get an confirmed reply in 30 days.

Suhita Mukherjee (Querist) 23 May 2020
Respected Sir
Thanks a lot for guidance

Guest (Expert) 24 May 2020
Welcome .......................

Guest (Expert) 24 May 2020
Author -- If at all you were given a Reply that Government had utilized your Land for its own purpose like for the sake of Roads etc you need not worry. " The Right to Fair Compensation and Transparency to Land Acquisition , Rehabilitation and Resettlement Act --and also the Land Acquisition Act 2013 ( this Act replaced the Land Acquisition Act 1894 ) "" would protect your interest and your self could claim reasonable Compensation. After getting the Confirmation of your Land Status as advised you should Discuss in Detail with a Local Good Civil Side Senior Advocate and should Proceed Legally for your Claims.

Rajendra K Goyal (Expert) 24 May 2020
There seem to be some mistake following situation can be possible:

a) The plot never existed, Registration deed was prepared with fraudulent way by giving situation of Rasta land, in such case seller is also involved. Criminal action can also be initiated against him.
b) By mistake wrong particulars of land entered in the sale deed. Someone knowing the fact illegally occupied the actual plot. There is possibility that seller has sold this plot with correct particulars to some other person. Old record of past 30 or more years may reveal the fact if searched.
c) The inspection by staff and legal search report by Bank lawyer was done without actual search / was table work without going in details.
d) What are the views of borrower / guarantor in this respect.

Search / investigation in deep is required to find the facts.

Raj Kumar Makkad (Expert) 24 May 2020
Again go through my earlier reply in the context of your subsequently submitted fact of 12 feet rasta found on the said place which again shows the seller has though share in the land but has no possession of the shared land because no formal partition of the once joint land has taken place.

Property mortgaed to bank but no property exists

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