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Bala (Software Engineer)     20 May 2011

Help Urgent Loan on POA

Hi All!

I applied for a home loan in LIC and all verification are done and got the sanction letter and the disbursement of the same is to be done today. But now I got a call stating that they can't give the cheque in the name of POA. Plot which I am planning to buy is from a POA. Please help me after verifying everything and giving sanction letter can they do like this ?. Does the bank really don't give cheque in the name of POA ?. Now the person via whom i went for loan is asking me to arrange via someother bank. Is it possible given power is valid maximum for another month I will be able to get a bank loan ?. Please help me, I am totally confused and I have paid upfront 30L to the POA and have made an agreement with him on the same which I have submitted as well.

Thanks
Bala



Learning

 3 Replies

Bala (Software Engineer)     23 May 2011


Btw I have got all sanction letter and one small issue now is that their was a minor litigation on the property stating some payment due and the original owner has registered a suit against this property+32 other property via a single deed. I have the xerox copy of the suit and cancellation of the suit. But now bank is asking both original. But since the original is against 33 property power agent says its not possible to get it from the person who filed it can you let me know your thoughts in this as well ?. Plz can someone give their thought on the same, its URGENT..

V. VASUDEVAN (LEGAL COUNSEL)     23 May 2011

LIC is correct. The cheque is not and SHOULD NOT be issued in the name of the POA Holder. The POA holder being an agent acting on behalf of the principal, is only authorised to receive the consideration in the name of the principal and deposit the proceeds to the credit of the principal. 

Vasudevan

Bala (Software Engineer)     24 May 2011

In that case my question is let say a new builder wants my 10 acres of land to promote his flat and even I want to sell. Now he can't pay the entire money and get it, so we enter into an agreement and the builder is given Power. Now if a person buy a flat from the builder will bank give the cheque in the name of original owner ? or the builder ?. If its the later then power is getting the cheque rt ? if the the former what happens if the owner is not giving the money.


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