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khader (buissness)     18 October 2010

Repco bank not giving the collateral document

my uncle got a loan from REPCO bank 5 lakhs ruppes by providing the  collateral ( mortgage)worth 35 lakhs.

now he has settled all the loan amount  with interest without any arrears,but the bank not giving the document back,The bank manager says that u have given guarante for another person who as taken 2 lakhs loan

he needs to settle balance 40000 ruppes only than we will release the document.But that person also provided mortgage of property worth 25 lakhs .

is it legal are illegal what i can do in this 



 6 Replies

Kumar Doab (FIN)     22 October 2010

In place of verbal communications  submit your letter stating the facts of settlement of  of your loan and ask to release the documents say within 7 days thru registered post/speed post at their cost and consequences or to confirm to you the date time venue on which you can collect the documents by hand, and obtain the acknowledgment of your letter from the bank under proper seal signature and diary number.

Once the bank replies you can state the mortgage of property worth 25 lakhs of other person.

You can ask the bank to supply the certified copy of the communications of the bank to the other person.

Has the other person refused or not responding to pay the bank.

You shall be able to deal with the matter once you have the documents in writing.

1 Like

SACHIN AGARWAL (ADVOCATE)     24 October 2010

The Banks have adopted this practice. However, it is totally illegal. You can serve a notice upon the Bank asking them to return the documents otherwise you can make a complaint in the matter to Banking Ombudsman and also can go to the Court. Bank would certainly be the looser.

1 Like

khader (buissness)     25 October 2010

thanks for giving me timely response

R.Ranganathan (Director)     27 October 2010

You can ask for the return of the documents through consumer court also. This will be treated as deficiency of service

1 Like

Parthasarathi Loganathan (Advocate)     31 October 2010

You need to check up the fact that whether you have extended guarantee to any other liability wherein mortgage documents have supplemented 

R.Ranganathan (Director)     01 November 2010

You can approach the court for return of documents provided you have not extended the mortgage to any other loan. For any further help ravee53@hotmail.com 


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