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Vinod Bachu (Pvt, Service)     31 October 2017

Mortgaged land purchased without knowledge

One of my friends purchased a plot in 1991, after checking the EC copy and on the basis of certified copies presented to him, later on in the year 2007, he got a notice from X bank, asking him to repay the loan against the mortgage of the purchased plot, but my friend ignored it due to his personal commitments and the previous owner was expired. Now, the bank has given a possession notice, asking my friend to vacate the land(this is still empty land) or pay the total balance of the loan amounting to 2.5 crores. What should my friend do now? he has approached the bank saying that he can pay the principal outstanding and cannot pay the total amount due, but the bank is not accepting. What can be done in this case? This is in hyderabad.


 6 Replies

manoj   01 November 2017

The bank dont have right to ask your friend to vacate the land, There is a procedure to proceed with case. The bank cannot treat your friend to vacate the land. He have to file the suit before the court for recovery of money. 




G.L.N. Prasad (Retired employee.)     01 November 2017

Some queries appear to be highly improbable but may be true.

When the land was purchased in 1991 by your friend, after 26 years (there is a limitation period for every action)  bank demanding your friend to vacate without any locus standi, when he has not executed any documents in favour of the bank etc., are really surprising.

There must be something that is not being disclosed or known and the transaction queries are incomplete.

The proper way is to personally solicit the services of a sincere advocate, show him all documents and enlist his support locally at Hyderabad.

Vinod Bachu (Pvt, Service)     01 November 2017

Thank you very much Prasad Sir for taking and responding. 

1. The bank is asking my friend to vacate the land though he did not enter into any agreement or any such paper work. They are saying this land is mortgaged with us and the loan is not being repayed, so we will have to sieze the land is what they are saying. 

2. The previous owner is dead and my friend made the necessary searched to trace the family but in vein. 

now, as per your response, can I understand that Bank cannot ask the current owner to vacate the land without any proper agreement between them? In this case my friend purchased the land without knowing that the land has already been mortgaged with the bank. 

Please advice. 

G.L.N. Prasad (Retired employee.)     01 November 2017


I am not advocate and a banker.

Proper course is taking an advocate into confidence.  When your friend is in possession, they can not make forcible eviction and approach through court of law by paying court fee at Current market rate against a party who is not concerned with the loan.  There is limitation period for every action.  The Bank is aware that their borrower has alienated the land long back, but not taken corrective step and abetted his fraud indirectly.  The banker is fighting from a very weak position and can not risk of spending good amount on a losing cause, when neither documents nor facts support his stand.

Please contact advocate as stated as these kind of guidance is not proper way without reading the documents and studying deep into the issue.

Before all that, ask your friend to file RTI Application to the Bank seeking certified copies of all documents available in their files basing on which the citizen is being harassed.  Hope this will silence mostly, if banker is at fault.

Vinod Bachu (Pvt, Service)     01 November 2017

Thank you very much sir, this will surely help. Will advice my friend as directed. 

k.n.VIJAYAKUMAR   04 November 2017

Another one simple point. Try to get the mortgaged paper or , the bank would have made some agreement with the party & would have registered with  the register

office. Get a certified copy. Taht will tell all details, it will tell it was mortgauged for how much, terms etc.Take them to  good lawyer.

he will guide.




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