prize (MD) 27 September 2019

Sold property

I sold my property in 2017with an existing loan with a co-operative bank, I entered into an agreement with buyer 1 and after a year buyer 1 said he don't have enough funds available so he bought buyer 2 (After 1.5 years) and my power of attorney holder registered the deed in buyer 2's name

The amount of loan was mentioned on the sale deed and also on the sale agreement. The sale agreement also mentions it is buyer responsibility to pay it off. The loan is under my name because the loan was look before the property transfer. The person who bought did not pay the loan, now bank said they will file a criminal case against me and my dad, as he was the power of attorney holder. what can be done in this situation, and also what are the steps to expect from the bank's side, Thank you so much in advance.

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RadhaKrishna Murthy K 27 September 2019

Bank can take an action suitable to recover the loan. 1) Can book a Criminal case under section 420 of IPC against you without clearning the Bank Loan or Notice/ Permission (NoC) from the Bank you sold the property through Power of Attorney. Here Banker's loan not cleared. 2) Bank has a right to take possession of the Property under SARFAESI Act or else can go to DRT (Debt Recovery Tribunal) to recover the loan amount. Solution better go n meet Bank Officials n Clear the loan under OTS (One Time Settlement) option. Otherwise you face Criminal and Civil Action from Bank.

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G.L.N. Prasad (Retired employee.) 27 September 2019

Selling a property without knowledge and consent of the bank, when the property is under a mortgage of a bank is a criminal offense.

Giving a POA in favor of father by a borrower may appear as conspiracy and still giving POA is also part of the breach of trust.

Except liquidating the loan to save your innocent father, there is no other way. This is a priority.

A litigant should approach the court with clean hands. The sale transaction is tainted with fraud, and any such transaction illegally with others without bank may not get immediate remedy.

Contact a local advocate and save your father from defamation at his age.

Bank has nothing to do with the illegal transactions and they have to follow laid down policy. You may bring pressures to the existing purchaser who is in possession.

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