Loans taken on properties already sold

Loans gives on mortgage of properties. Mortgage banks provide loans to clients purchasing real estate properties. The institutions then place the loans on a pre-established warehouse line of credit, wherein the loan is put on sale in the secondary market. Investors, typically large institutions and corporations, purchase or invest in such loans.

The loan is recovered on priority basis  the first one is entitled  and then second.

If you say that he obtained the loan on your property how can he do so without the original registered documents. 

The loan on property will be sanctioned by bank only after verifying the original documents and that too after the bank panel lawyer's opinion.

In what way he has committed a crime against you?

If your property is involved in the subsequent loan, then you can file a suit for mandatory injunction against the seller restraining him from interfering in your property and also to cancel the fraudulently obtained loan giving your property as collateral security.

You can implead the bank manager as party and seek the relief of cancelling the loan granted against your property without your consent or authorisation

Thanks to all the advocates, especially to T. Kalaiselvan, Advocate

The loans are taken without the knowledge of property buyers and the bank is also kept in dark.  I have given complaint to bank branch, the copy of which is attached.  The bank has acknowledged the complaint copy, but no update from bank.  

The bank is also in shock to know, this.  They are also clueless how 2 loans (DTDs) are created on single property in two different sub-registrar office.  It is more than 3 months since 1st complaint is raised, the bank is getting EMIs so far.  

For reasons unknown to me, they are not initiating any action. 

The bank appears to be in colusion with the borrower because without the bank's knowledge about the existing encumbrance in the form of another registered mortgage loan, this cannot happen.

You can escalate your complaint to the higher officer above the branch manager i.e., to regional manager or the DGM etc. and request them for an inquiry on this especially since your property is involved in this without your consent.

You can send a letter enquiring about the status of your complaint with the vigilance cell in this regard under the povisions of RTI Act too.

If the local police is not initiating any action on your complaint, you may approach the judicial magistrate court with a petition under section 156(3) cr.p.c. or under secion 200 cr.p.c. 

After exhausting all the remedies you can approach the civil court with suit for mandatory injunction impleading the seller, the bank manager as necessary parties and seek direction to close this collateral security involving your property  towards the fraudulent loan obtained by the seller. 

@ T. Kalaiselvan, Advocate (Advocate)

Thanks for the detailed reply.

Today, I spoke to secretary of Regional manager and also to legal cell.  They assured to check the matter with the branch manager and they will have details to respond by next week.  

Thanks for your time and the clear advice.

I would say that there was negligent on the part of the creditor in failing to obtain Title Investigation Report on the property before disbursing the loan.