Can anyone purchase agricultural land that is under gurantee

Advocate

Dear Sirs,

A stood as a gurantor with her agricultural land to her  former husband's transport business with a nationalised bank. 

Loan is still pending. 

Can B purchase the agricultural land of A?

 
Reply   
 
ha21@rediffmail.com Mumbai : 9820174108

1.  The Guarantor-Wife is by legal default, liable for the loan amount taken by the Husband and if the Agricultural Land is pledged as lien, then it would be unwise to sell the mortaged property and would amount to criminal Fraud and Forgery, against the Bank.


2.  Technically, the guarantor-lien may have been marked on the Agricultural land records, by the Revenue authorities.  AND if "B" (new buyer)  does a "Search" of the agricultural land records, the same should be notable, by the search-advocate.  However an "Agreement to Sell"  .OR.  an MOU,  can be executed (between A & b) with conditional clauses, meaning subject to clearing of the loan-guarantor-lien notings from the land records.  This would circumvent the criminal angle of Fraud & Forgery, on the Guarantor-Wife.


Keep Smiling .... Hemant Agarwal

 
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Advocate

Dear sir,

Thank you for your valuable insight.

The would save the prospective buyer from attracting unnecessary headache.

However, I forgot to mention that the guarantor is selling only part of her agricultural land. 

2) Her hypothication is not entered in any land records. EC is not reflecing her guarantee.

3) The remaining (unsold)  land is good enough to fetch the loan amount in case the principal borrower fails to clear the laon...

 

Pl suggest that even in such a situation would attract fraud and  forgery on the guarantor - wife

 

Regards

 
Reply   
 
ha21@rediffmail.com Mumbai : 9820174108

1.  The fact remains that the Agri Land was mortaged as guarantee by the guarantor-wife.  Further since the revenue land records (register) was not marked for lien, it is further impossible to identify as to which portion of the agri land is mortgaged and which may be freely saleable.


2.  Typically, the agri land, would have been mortaged, as ONE UNIT and not piece of the same.  Hence the guarantor-wife cannot reason as to which portion of the land (plot number) can be sold without attracting penal action.


Keep Smiling .... Hemant Agarwal

 
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