Share certificate

Roland Noronha (Querist) 17 January 2024 This query is : Resolved

Our building is preparing to go for redevelopment. Conveyance order recieved from Registrar. Stamp duty paid and registration is due this week as all procedures have been adhered to.

A separate exercise being done by Society who has asked all members to show Share Certificates physically to ascertain how many flats are on mortgage. The certificates will be returned immediately after checking by committee members. Few members have mentioned that all documents including share certificate are in the custody of bank. Is it possible that we get the share certificate attested by bank manager with a remark that the original in their custody. Alternatively, may be a letter from the bank should suffice mentioning that the same is in their custody against mortgage.

Please clarify.

Thanks
Roland Noronha

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Quick Summary

During building redevelopment, a society requires members to present their share certificates. If your share certificate is held by your bank due to a mortgage, you may be able to get a letter or attestation from the bank confirming this. The society's own records should also be definitive, and if there are discrepancies, a notarised affidavit might be necessary.

T. Kalaiselvan, Advocate (Expert) 17 January 2024
The banks generally do not give even copy of the share certificate or title document until the mortgage loan is fully discharged by the borrower.
However if the bank is kind enough to accept your request, they may give a certificate stating that the said documents are held in their custody against collateral security towards the home loan and that should be sufficient for the society to proceed with the verification process.
As a matter of fact the society would be having the record of the share holders in their books

P. Venu (Expert) 17 January 2024
The Society's records should be conclusive as to the shares held by the members. As such, the step initiated by the Management appears to be a procedural overreach.

kavksatyanarayana (Expert) 17 January 2024
The Society shall maintain records of the committee and if the names of the flat owners who issued share certificates are not noted in the records it is their fault. Verify the records and if any are missed then such members shall file a notarized affidavit regarding the share certificate as the bank authorities may not oblige to give a certificate.

T. Kalaiselvan, Advocate (Expert) 18 January 2024
If the records of any member or his share certificate is not found in the society records, then that particular member may be asked to produce the copies of the share certificate or to obtain a certificate from bank to furnish a certificate giving the detail of the share certificate held in their deposit towards the home loan purpose.

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